The Qantas Airways (ASX: QAN) share price will be on watch today after the ACCC made an announcement about a potential partnership between the airline and BP.
Qantas is Australia’s leading airline. It was founded in the Queensland outback in 1920, the Qantas name was originally Queensland and Northern Territory Aerial Services. The company operates two main airlines – Qantas and Jetstar – and subsidiary businesses including other airlines, businesses in specialist markets such as Q Catering, Qantas Freight Enterprises and the popular Qantas Frequent Flyer program. It employs some 30,000 people with around 93 per cent of them based within Australia.
Qantas And BP To Be Approved For Partnership
The Australian Competition and Consumer Commission (ACCC) is proposing to grant authorisation allowing Qantas, BP Australia and independent BP petrol stations to collectively participate in BP Rewards, Qantas Frequent Flyer and Qantas Business Reward programs.
The ACCC is proposing a five year authorisation for these arrangements, which include allowing BP to require BP-branded petrol stations to take part in the Qantas rewards programs.
ACCC Commissioner Stephen Ridgeway said: “We consider that these arrangements will provide public benefits, for example by giving consumers more opportunity to earn and use reward program points.
“The arrangements are also likely to provide cost savings to the parties, by allowing BP to negotiate with Qantas on behalf of BP petrol station owners, rather than each station owner needing to negotiate individually.”
The ACCC has some concerns about the potential harm from BP sharing consumer data with Qantas, which is why it’s encouraging the two of them to adopt its recommendations about the collection and use of customer data in a soon-to-be-published report.
But, the ACCC is comfortable this won’t have a significant negative impact to reduce competition because there are many other retail, petrol and non-petrol potential partners for other loyalty programs.
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