(MENAFN) Australia's consumer watchdog said it planned to reject a proposal by airlines Qantas and China Eastern to more closely coordinate their operations, saying it will harm competition, The Peninsula Qatar reported.
But with the two carriers accounting for more than 80 percent of capacity on the key Sydney-Shanghai route, which makes up nearly a quarter of all direct Australia to China flights, the regulator said it was not in favor.
"The ACCC understands Qantas' desire to form an alliance with a Chinese airline to establish a gateway to Northeast Asia," The Australian Competition and Consumer Commission (ACCC) chairman said.
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