The ACCC recently extended its approval of
the joint services agreement between Qantas and Britain Airways
covering the so-called “Kangaroo Route” between Australia and London.
It was a poor deal, and it’s just been exposed by the far better terms
negotiated by our cousins across the Tasman.

The New Zealand government today announced an agreement with the British government on an open skies
policy. Subject to the availability of landing slots at British
airports, the deal means that Air New Zealand will be able to negotiate
an increase on its existing seven flights a week to the UK.

Under
the NZ deal all restrictions for flights between the two countries have
been lifted, except for one that limits the number of passengers who
can be carried to Heathrow or Gatwick in the UK and then on to the US
(due to the bilateral agreement between the European Community and the
US). Contrast this deal with the new joint services agreement
negotiated between Australia and the UK which has a limit of 28 flights a week to London via Singapore or Bangkok for the next five years.

The
ACCC has even confessed there are anti-competitive aspects of the joint
services agreement, but argued that tourists and economy passengers
will benefit.