The Australian Competition and Consumer Commission has granted interim authorisation for a proposed Affiliation Agreement between Emirates and the Dubai Aviation Corporation, trading as Flydubai.
Emirates and Flydubai have applied for authorisation which provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.
Interim authorisation commences immediately, and will remain in place until the ACCC's final determination comes into effect or is revoked. The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.
Under the Affiliation Agreement, the airlines will coordinate operations on international air passenger transportation services and air cargo transportation services between Australia and Dubai and on 'behind and beyond' Emirates and Flydubai services.
“The ACCC has taken into account the lead times required to implement the arrangements under the Affiliation Agreement and considers that granting interim authorisation is unlikely to result in permanent changes to the relevant markets. Interim authorisation will allow the airlines to begin the planning, marketing and sale of the new services which will reduce implementation delays,” ACCC chairman Rod Sims said.
The ACCC has invited submissions from interested parties on the substantive application for authorisation. Those submissions close on 24 May 2012. The ACCC will then proceed to publish its draft determination.