QANTAS Airways chief executive Alan Joyce says the airline's proposed deal with Emirates will increase competition in the Australian market.
As Australian Competition and Consumer Commission (ACCC) chief Rod Sims begins to assess the Qantas-Emirates tie-up, Mr Joyce has sought to allay fears of ticket prices going up.
There were 28 carriers operating on the so-called kangaroo route to Europe and pricing was set "by all of that competition", Mr Joyce said on Sunday.
Those competitors had already reacted to rumours of the Qantas-Emirates union by adding capacity into the Australian market which would put pressure on prices, he told Sky News.
"We think that Qantas and Emirates getting together will be good for competition because it is making our competitors raise their game and be more competitive against this alliance," he said.
"At the end of the day we think we can go through that concern with the ACCC and explain to them why this is still positive for the customers in Australia."
Qantas has unveiled a 10-year partnership with the Dubai-headquartered Emirates involving an extensive codesharing arrangement, reciprocal frequent-flyer benefits and joint marketing, pricing and coordination on certain routes.