The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* the implementation in Australia of two programs offered by the Star Alliance, including Air New Zealand Limited, to its corporate customers and conventions clientele, ACCC Chairman, Professor Allan Fels, announced today.
The programs are known as the Star Joint Corporate Agreement and the Star Alliance Conventions Plus Program. Under the programs Star Alliance airlines will offer agreed discounted airfares to business travellers and convention delegates.
Participation in the programs by Star Alliance airlines, corporate travellers and conventions delegates is voluntary.
While Star Alliance airlines will agree on the level of discounts to be applied to airfares, which has the potential to limit the discounts applied, the fares themselves will not be agreed.
"The programs will increase the range of airfares available to corporate travellers and convention delegates, particularly for those travellers who would otherwise not have access to a discounted airfare.
"On balance, the ACCC considers that the two programs are likely to result in a net public benefit".
In reaching its draft decision, the ACCC was mindful that a Star Alliance carrier does not currently operate in the Australian domestic market.
"The ACCC's view would change if Air New Zealand entered into an alliance with Qantas of the type currently being considered by the ACCC.
"Consequently, prior to the ACCC issuing a final decision in relation to the Star Joint Corporate Agreement and the Star Alliance Conventions Plus Program, the ACCC considers it is necessary for Air New Zealand to undertake that it would cease participation in both programs in the event that it enters into an alliance with Qantas".
The ACCC is now seeking comments on its draft decision from the applicant and interested parties. These comments will be taken into account by the ACCC before it issues its final decision later this year. Interested parties wishing to provide comments in relation to the ACCC’s draft decision should address their submission to:
The General Manager, Adjudication Branch, ACCC, PO Box 1199, Dickson ACT 2601 or adjudication@accc.gov.au.
Copies of the application and submissions made by the applicants are available from the ACCC website.