The Chinese government backs alliance between Qantas and China Eastern

Chinese Ambassador Ma Zhaoxu has informed the Australian Competition and Consumer Commission that it should “bear in mind the interests of our overall relationship and make a fair and reasonable decision on this matter”. This follows the ACCC rejection of the tie-up because it believes the dominance of the partners on the Sydney-Shanghai route, where they would have 80%market share, would give them an ability to reduce capacity and raise fares. It argues this outweighs any public benefit. The problem is the alliance was signed at a high-level ceremony in Canberra in November attended by Tony Abbott and China’s President