American Airlines, Qantas Granted Tentative Approval for Joint Venture

By Paul Riegler on 3 June 2019
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DSC_0668 (1)American Airlines and Qantas Airways have received tentative approval to operate a joint venture, the U.S. Department of Transportation said Monday.

The agency issued an order tentatively approving the plan and giving the two airlines antitrust immunity covering their international service.

The DOT rejected in 2016 a similar application covering the United States, Australia and New Zealand.

Final approval would allow the two airlines to coordinate schedules, pricing, sales, and frequent-flyer programs. American said that it expects a final decision to be forthcoming.

American Airlines sees the joint venture as a gateway to adding new routes and adding jobs.

“The joint business will also create additional jobs at our respective companies and in the industries we service,” said Doug Parker, American’s CEO.

The airlines said they plan to add multiple new routes within the first two years of the joint venture including Chicago-Brisbane and San Francisco-Brisbane.

The two carriers announced plans to retile the application in January 2017. At the time, they said they would limit the areas where the two would cooperate that would require anti-trust immunity. This includes discontinuing a Qantas codeshare on American’s flights between Los Angeles and Sydney.

(Photo: Accura Media Group)

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