Qantas fears another set back

Qantas has cautioned that its pan-Asia strategy will come under threat if the consumer watchdog does not allow them closer co-ordination with Jetstar-branded airlines such as its joint ventures in Japan, Vietnam and Singapore, The Australian reported.

Read a short excerpt from the article below:

Qantas also claims a failure to approve a proposed Jetstar Joint Venture Co-ordination Agreement may affect the massive order for 110 Airbus A320s, including 78 efficient A320neos, underpinning Jetstar’s growth.

The company has lodged a 61-page submission with the Australian Competition & Consumer Commission calling for authorisation of the agreement to integrate the management of the operational, commercial and procurement activities of existing and future Jetstar joint ventures.

It argues the move will bring significant benefits to consumers, including lower prices, better connectivity, innovation and increased in-bound tourism.

But without the deal it "would not continue to establish or support Jetstar LCCs (low cost carriers) in Asia or be in a position to achieve the objectives of the Jetstar pan-Asia strategy".

To read the full article, click here.

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