On 15 May 2013 the Minister of Transport authorised a Master Coordination Agreement which allows Qantas and Emirates to coordinate their operations (including on trans-Tasman routes) pursuant to s.88 of the Civil Aviation Act 1990.
Under the Master Coordination Agreement, Qantas and Emirates may cooperate, for an initial period of five years, on passenger and freight operations, including:
- planning, scheduling, operating and capacity
- sales, marketing, advertising, promotion, distribution strategies, reservation priority and pricing (including fares, rebates, incentives and discounts) (for passengers, freight customers and agents)
- connectivity and integration of certain routes
- code-share and interline arrangements
- control of inventories and yield management functions
- frequent flyer programs
- all passenger-related aspects to provide a consistent level of service to customers including ground services and lounge access
- harmonising service and product standards
- harmonising IT systems
- joint airport facilities
- potentially joint offices for sales activities
- potentially other aspects of operations including ground handling, catering, joint procurement and flight operations
- where appropriate and mutually agreed, making joint submissions to authorities on operational matters
- services and activities that are required to facilitate any of the matters referred to above.
Capacity conditions imposed by the Australian Competition and Consumer Commission will apply to the trans-Tasman sectors which Qantas and Emirates both operate. These conditions are designed to ensure that low fares are maintained, by limiting the airlines’ ability to increase prices through reducing capacity.
View the Application to the New Zealand Minister of Transport pursuant to Part IX of the Civil Aviation Act 1990 - Qantas Airways Limited (ABN 16 009 661 901) and Emirates - Master Coordination Agreement of 10 September 2012.
The Ministry of Transport invited interested parties to comment on the application. Any comments were to be received by 19 October 2012.
The following submissions and comments were received in response to the application: