Australia's competition regulator said on Friday it intended to deny authorisation for Qantas Airways and China Eastern Airlines to coordinate operations between the two countries, citing competition concerns amid increased demand. The Australian Competition and Consumer Commission (ACCC) said an agreement that enabled the two key competitors to coordinate passenger and cargo transport flights between Australia and China until the end of March 2024 could potentially breach competition laws. Qantas has been under the radar with the flagship carrier suffering a string of reputational damage after the ACCC initiated legal proceedings for allegedly selling tickets for thousands of cancelled flights, following which its long-serving CEO Alan Joyce announced an early retirement. Earlier this week, Australia's top court ruled that the airline broke the law by sacking 1,700 ground staff and replacing them with contractors early in the COVID-19 pandemic. The regulator had previously granted the two airlines an interim authorization seeking time to further assess the implications of the coordination for public benefits. ACCC Commissioner Anna Brakey said any additional services on routes other than Sydney- Shanghai could potentially be a public benefit but added that the ACCC was not satisfied they were likely to kick-start between now and March 2024.<br/>
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Qantas’ fall from grace has prompted rival airlines, airport operators and travel agents to call for swift structural reform to open the market to more carriers and rein in the giant. In just the past month, Qantas has been hit by a class action over its retention of Covid-era travel credits and sued by Australia’s competition regulator for allegedly selling seats on already canceled flights. Amid the outcry, then-CEO Alan Joyce brought forward his retirement. In the latest blow to the airline’s reputation, Australia’s highest court this week ruled that Qantas illegally sacked almost 1,700 staff during the pandemic. The controversies at the country’s largest carrier have created a trigger for potential change — before a government review early next year sets out aviation policy for the coming decades. Sensing a rare opportunity, an Australian aviation ecosystem that’s normally ruled by Qantas is piling in. At a conference in Brisbane this week, industry executives demanded action to bring in more competition. “There’s an opportunity for competition to be grasped,” said Tim Jordan, CEO of new low-cost airline Bonza. “Now is the time to do it.” Jordan called for access to takeoff and landing slots at Sydney airport, the country’s main gateway. Bonza could serve 20 destinations from Sydney if it was allowed to operate from the airport, and its tickets would cost less than half rivals’ fares, he said. In an interview, Jordan described slots at Sydney airport as “a national asset.” Qantas, which has a 60% market share, has long been accused of hoarding slots at Sydney so rivals can’t get them. It denies the allegations. The competition regulator has said shaking up slot allocations would be the most effective way of limiting Qantas’ dominance. Virgin Australia has about one third of the Australian passenger market.<br/>