The Australian Competition and Consumer Commission (ACCC) has issued a draft ruling giving American Airlines and Qantas’s proposed expanded alliance on trans-Pacific routes the green light for the next five years.
Although Qantas and American had an existing alliance that the ACCC approved in September 2011 for five years, the pair sought reauthorisation of a new agreement that included a revenue-sharing component to reflect American’s entry on trans-Pacific routes with its own metal and Qantas’s return to San Francisco.
ACCC Commissioner Jill Walker said the alliance was likely to benefit the travelling public through more flights and new destinations.
“The alliance is also likely to promote competition between other airlines that provide services on trans-Pacific routes,” Dr Walker said in a statement on Friday.
“The ACCC considers that the alliance is unlikely to result in any significant public detriment, largely because the ACCC accepts that American Airlines would be unlikely to introduce its own trans-Pacific services in the absence of its alliance with Qantas.”
In December, American will begin flights between Sydney and Los Angeles with Boeing 777-300ERs, while Qantas is relaunching services to San Francisco in the same month.
The US carrier is also adding Auckland to its network from June 2016 with Boeing 787s.
Under the alliance, Qantas and American would coordinate marketing and sales, freight, pricing, scheduling, distribution strategies including agency arrangements, yield and inventory management, frequent flyer programs, lounges, joint procurement, and product and service standards, the ACCC said.
The ACCC granted interim authorisation in July, which allowed Qantas and American to begin selling tickets for their proposed new flights.
The expanded alliance was approved by the New Zealand transport minister in October.
Qantas and American have also applied to the US Department of Transportation for approval of the expanded alliance.
Qantas said in a statement on Friday it welcomed the ACCC’s draft determination.
The Arriel 2K engine that powers Leonardo’s AW09 helicopter, has received its type certificate from EASA. This marks an important milestone towards the entry into service of the AW09, Leonardo&r...
Daher Aircraft has delivered the 400th Kodiak, marking a significant achievement for the multi-role airplane family as its customer base continues to expand across government, commercial, business and...
flydubai will host its UAE National Careers Open Day on 16 August at the flydubai Campus, inviting UAE nationals to explore rewarding careers with one of the region’s fastest-growing airlines an...
Airbus Helicopters officially delivered the first NH90 Standard 2 to the French Armament General Directorate. This new variant of the NH90 TTH was designed specifically for special operations. Fr...
