Hong Kong watchdog closes antitrust probe into proposed deal between Cathay Pacific and Malaysia Airlines after duo scrap idea
- Competition Commission announces end to investigation after learning in July that airlines had scrapped plan to share revenues, as well as coordinate pricing and flights
- Watchdog’s chief executive vows to keep an eye on air travel market as aviation industry enjoys strong rebound following end of Covid-19 pandemic
Hong Kong’s competition watchdog has closed an antitrust investigation into a proposed partnership deal between the city’s flag carrier Cathay Pacific and Malaysia Airlines after the two companies abandoned the idea.
The Competition Commission on Thursday said it had ended its investigation after learning in late July that the airlines had opted to scrap the plan to share revenue and costs, as well as coordinate pricing and schedules for flights between Hong Kong and parts of Malaysia.
The deal would also have involved joint sales and marketing.
Rasul Butt, the commission’s chief executive, vowed the watchdog would continue to keep an eye on the air travel market since it was enjoying a strong rebound after the end of the Covid-19 pandemic.
“The commission is mindful of information from public sources that the costs of travel have increased considerably post-pandemic and will be vigilant in identifying and tackling situations where anticompetitive conduct or lack of competition may be a contributing factor,” he said.
The proposed deal came to light in May of last year, when the airlines jointly made an application to the Malaysian Aviation Commission to exempt the proposed partnership agreement from the country’s competition law.