The Australian Competition and Consumer Commission has denied authorization for Qantas Airways and Japan Airlines (JAL) to coordinate flights between Australia and Japan.
Destinations with high vaccination rates are an initial focus, while Australia’s flag-carrier is evaluating whether to operate scheduled service between London Heathrow and Darwin.
The latest surge of COVID-19 cases in Australia has dealt a crucial blow to local airlines that were beginning to recover some momentum based on their domestic strength.
As well as further growing its domestic network with seven new routes, the oneworld alliance member is adding more Boeing 787 and Airbus A330 flights within Australia.
Qantas predicts its domestic capacity will exceed pre-pandemic levels for the fiscal year beginning July 1, and the growth it has been seeing in this sector is driving improvements in some financial measures.
The decision comes after the Australian government released a revised forecast for the recovery of international travel that presented a gloomier outlook than previously projected.
Australian regulators have issued a draft rejection of an application by Qantas and Japan Airlines to cooperate more closely, although Qantas says it will argue to have the decision reversed in the final ruling.
Qantas and Virgin Australia are continuing to ramp up their domestic services to nearly pre-pandemic levels, with both airlines bringing in more aircraft to boost their domestic fleets.
Australia’s competition watchdog has dismissed claims by Regional Express (Rex) that Qantas’ entry into thin regional domestic routes is anti-competitive.
