The partnership between China Eastern Airlines with Qantas is expected to improve the level of service of the two airlines, as travel demands increased as a result of the Free Trade Agreement (FTA) between China and Australia.
China Eastern Airlines made this pronouncement on March 25, Wednesday, after the Australian Competition and Consumer Commission (ACCC) had earlier junked a proposed coordination agreement forged by Qantas and China Eastern concerning flights to China.
The China Daily reported that ACCC's concern was that Qantas and China Eastern Airlines, which have 80 percent control of the Sydney-Shanghai route under the agreement, would enable the two airlines to limit capacity and raise airfare prices.
"They are the two major airlines on the route and the only airlines offering daily flights, and so the major competitive constraint on each other," ACCC Chairman Rod Sims was quoted as saying. "Competition between them will be greatly reduced under the proposed agreement."
The ACCC has set the deadline for the submission of response to the ACCC's draft decision on April 8, the report said.
China Eastern Airlines Oceania Region said in a statement to Xinhua News Agency that competition in the Australia-China market remains strong, as more than 20 airlines fly daily between China and Australia with more airlines expecting to follow.
"China Eastern Airlines and Qantas will follow up this issue and actively communicate with the ACCC and we hope that cooperation between the two companies will help determine a positive outcome to this matter," the statement said.
Australia and China reached an FTA in Nov. 2014 that will further promote the exchange of personnel and business between China and Australia, and through close consultation, China Eastern Airlines and Qantas announced a joint marketing partnership program at the same time.