Qantas sells London via Dubai tickets

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Qantas Airways is preparing for its proposed 10-year alliance with Emirates after dropping plans to seek interim authorisation from the competition regulator.

While interim approval would have enabled the pair to discuss matters such as pricing and schedules, Qantas said on Thursday it would still be able to do a significant amount of work with Emirates.

The Australian Competition and Consumer Commission (ACCC) said it would continue to assess the deal, with a draft determination due out by December and a final decision by the end of March 2013.

“The decision to withdraw the interim application has no impact on that broader assessment,” ACCC chairman Rod Sims said in a statement.

“The ACCC also notes that Qantas and Emirates believe that they are able to undertake a significant amount of preparatory work without the need for interim authorisation.”

Despite dropping its bid for interim authorisation, Qantas has forged ahead with changes to its European operations and started selling tickets for its daily flights to London from Melbourne and Sydney via Emirates’ Dubai hub.

Qantas said the first flights on the revised routes – its services to London stop in Singapore currently – were due to start on March 31, 2013, and did not require ACCC approval nor coordination with Emirates.

Meanwhile, Qantas said its Sydney to Frankfurt service would end in October 2013, not March 2013 as originally planned.

In September, Qantas and Emirates unveiled a global partnership that involved an extensive codesharing arrangement, reciprocal frequent-flyer benefits and joint marketing, pricing and coordination on certain routes.

The alliance was regarded as a key plank in Qantas chief executive Alan Joyce’s bid to turn around the Flying Kangaroo’s struggling international operations, which reported a $450 million loss in 2011/12.

A number of competitors, including Virgin Australia and Singapore Airlines, had written to the ACCC opposing interim authorisation.

Qantas shares closed one cent lower at $1.22.