Australia's competition regulator on Monday denied approval for an agreement between Qantas Airways Ltd. and Japan Airlines Co. to coordinate flights between Australia and Japan, saying it would reduce competition when coronavirus travel restrictions are lifted and international travel resumes.
The Australian Competition and Consumer Commission said in a statement that the proposed agreement would not only remove competition between the two top competitors but also make it difficult for other airlines to operate routes between Australia and Japan.
"Preserving competition between airlines is the key to the long-term recovery of the aviation and tourism sectors, once international travel restrictions are eased," said Rod Sims, chair of the ACCC.