SYDNEY: Australia’s competition watchdog on Friday reversed a draft decision against a joint venture between Qantas and China Eastern, giving the carriers the green light to coordinate pricing and scheduling.

The Australian Competition and Consumer Commission said in March the original proposal between the airlines would harm competition. But the regulator said on Friday that China Eastern had since agreed to increase the frequencies of its services between Australia and China and introduce a new route if the deal was allowed.

Qantas and China Eastern will also expand the destinations covered by their existing code-share agreement as they seek to establish a gateway through China Eastern’s Shanghai hub for connecting services between the countries.