American Airlines And Qantas receive final approval on joint venture

American Airlines and Qantas receive approval to forge an expanded alliance.

 

The US Department of Transportation (DOT) is expected to provide tentative approval to a bid by American Airlines and Qantas to operate a joint venture

 

Initially filed in 2016, the joint venture was rejected by the Obama administration amid opposition from rival carriers Hawaiian Airlines and JetBlue Airways.

 

However, in February 2018, American and Qantas made a second attempt to gain US regulatory permission, threatening to cancel services if rejected for a second time.

 

Under terms of the agreement, the two airlines plan to jointly operate some routes and push operations together in a variety of airports around the world.

 

The joint venture is effectively an extension of the Oneworld alliance relationship already in place between American and Qantas.

 

“We have concluded that, overall, the alliance and JBA will be pro-competitive and are likely to generate substantial benefits for the traveling public,” the DOT final order published on Friday said.

 

In 2001, US regulators approved similar joint venture agreements for United Airlines and Air New Zealand; and in 2011 for Delta Air Lines and Virgin Australia.