Qantas probed over allegedly using crisis to try to sink rival airline

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Qantas probed over allegedly using crisis to try to sink rival airline

Qantas and Virgin Australia have cancelled all worldwide flightsand slashed home routes after the nation’s borders had been shut (AFP Photo/Saeed KHAN)

Qantas allegedly engaged in anti-competitive behaviour by ‘making an attempt to ship a message that Virgin was in hassle and wouldn’t survive’ the coronavirus crisis.

Australia’s shopper watchdog stated Tuesday it was investigating Qantas for alleged anti-competitive behaviour, after its CEO appeared to name for rival Virgin Australia to be minimize out of an enormous authorities bailout.

Australian Competition and Consumer Commission (ACCC) chair Rod Sims informed AFP he had acquired a letter from Virgin Australia chief government Paul Scurrah alleging Qantas had engaged in anti-competitive behaviour by “making an attempt to ship a message that Virgin was in hassle and wouldn’t survive” the coronavirus crisis.

Qantas CEO Alan Joyce informed Sky News final week that Australia’s authorities ought to “not take care of the badly managed corporations which have been badly managed for 10 years” and shouldn’t nationalise Virgin if it falters.

Joyce additionally informed a information convention the worldwide coronavirus outbreak had plunged airways right into a “survival of the fittest” and Qantas was “ensuring we’re final man standing”, feedback Sims stated he discovered “very unhelpful and inconsistent with the time of crisis that we’re in”.

Qantas and Virgin have suspended all worldwide routes and slashed home flights after Australia shut its borders to restrict the unfold of COVID-19.

The aviation sector has acquired a Aus$715 million (US$420 million) bailout from the Australian taxpayer.

“Australia went into this crisis with two full service airways and it’s actually vital that we come out the opposite finish with two full service airways,” insisted Sims.

“We don’t need to harm the construction of the financial system, in order that when the well being crisis is over, we are able to stand up and be prepared to go. So we don’t need the type of structural change that may be being prompt by Mr Joyce.”

Sims stated that if the ACCC discovered substance to the allegations Qantas may discover itself in courtroom, probably dealing with a whole bunch of tens of millions of {dollars} in penalties.

“So the ramifications could be fairly critical, however I don’t need to get forward of ourselves, we’re at an early stage of an investigation,” he stated.

The subsequent step within the ACCC probe could be to contact Qantas, which Sims anticipated would happen “very quickly”.

Qantas and Virgin didn’t instantly reply to requests for remark.

For extra information your means, Orignaly Published on https://citizen.co.za  and 

live at 2020-03-24 06:28:16

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