CCCS releases Qantas and Emirates from capacity commitments on the Singapore Brisbane and Singapore Melbourne routes

CCCS releases Qantas and Emirates from capacity commitments on the Singapore-Brisbane and Singapore-Melbourne routes

4 October 2024

(View Media Release in PDF)

1. The Competition and Consumer Commission of Singapore ("CCCS") has released Qantas Airways Limited ("Qantas") and Emirates (the "Parties") from capacity commitments on the Singapore-Melbourne ("SIN-MEL") route and released Qantas from capacity commitments on the Singapore-Brisbane ("SIN-BNE") route.

Background

2. On 28 March 2013, CCCS issued a conditional clearance decision (the "2013 Decision") for the proposed alliance between the Parties (the "Alliance") after they provided CCCS with a voluntary undertaking to maintain minimum weekly seat capacities for passengers on the SIN-BNE and SIN-MEL routes, and to increase the capacities if certain conditions are triggered (the "Undertaking").^[1]Under the Alliance, the Parties coordinate on various aspects of their flight services such as pricing, scheduling, marketing, planning, operating capacity and airport facilities across the global networks of both Parties across routes from Australia to Europe, via Singapore and Dubai.

3. On 22 March 2024, the Parties requested to either (i) terminate the Undertaking entirely while keeping the 2013 Decision in force; or (ii) vary the Undertaking by removing the Parties' capacity commitments on the SIN-MEL and SIN-BNE routes, and, instead, only require the Parties to notify CCCS of any future operational overlaps on routes between Australia and Singapore.

4. CCCS conducted a public consultation from 8 to 19 August 2024 on the potential release of the Parties' capacity commitments and did not receive any feedback from third parties expressing concerns.

CCCS's Assessment

5. The withdrawal of Emirates from both SIN-MEL and SIN-BNE routes (Emirates withdrew from the SIN-BNE route in 2020) will effectively remove any operational overlap between the Parties between Singapore and Australia.

6. The Parties' market position has weakened since the 2013 Decision. The Parties' combined market share on both SIN-MEL and SIN-BNE routes have decreased significantly since 2013 and they are no longer market leaders. There has been significant expansion by a competitor, Singapore Airlines on both routes, while a recent entry by Turkish Airlines will increase competition on the SIN-MEL route.

7. CCCS has assessed that there has been a material change in circumstances since the issuance of the 2013 Decision, and that the Undertaking, which was intended to address competition concerns arising from the Alliance in the context of CCCS's assessment in the 2013 Decision, is no longer necessary.

8. With the release of the Undertaking on 4 October 2024, the immunity accorded by the 2013 Decision on the Alliance has correspondingly been removed.

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About The Competition & Consumer Commission of Singapore (CCCS)

The Competition and Consumer Commission of Singapore ("CCCS") is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Competition Act 2004 which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop and/or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act 2003 or CPFTA which protects consumers against unfair trade practices in Singapore. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

For more information, please visit www.cccs.gov.sg.

^[1]On 22 October 2019, CCCS released Emirates from its capacity commitments on the SIN-BNE route following a request by Emirates in connection with its withdrawal from the route.

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