Qantas, American Airlines JV likely to materialise

Qantas and American Airlines are creating a joint venture to better serve customers flying between the US and Australia and New Zealand.

Final approval of the joint business will allow for commercial integration between the two carriers, delivering new routes and customer benefits, including:

  • The opportunity to launch new routes and flights to new destinations, including to city pairs not currently served by either carrier;
  • An expanded codeshare relationship and optimised schedules on trans-Pacific services, opening up more connections to more destinations and reduced total travel time;
  • Better access to seats on each carrier’s network, leading to lower fares.
    Additional frequent flyer benefits by further integrating the carrier’s programmes, including higher earn rates for points on each other’s networks beyond what is possible today through oneworld, as well as increased redemption opportunities and improved reciprocal end-to-end recognition of our top-tier frequent flyers;
  • Co-location at airports, investments in lounges, baggage systems and other infrastructure designed to better serve the carriers’ joint customers

As part of the case put to the US Department of Transportation (DOT), Qantas and American flagged an intention to launch several new routes within the first two years of the proposed joint business.

Qantas expects to announce details of two new routes – Brisbane-Chicago and Brisbane-San Francisco – once final approval is received.

“As was evident in the unprecedented level of public support for this application, the joint business will also create additional jobs at our respective companies and in the industries we serve,” said American’s chairman and CEO Doug Parker.

Qantas Group CEO, Alan Joyce, said: “For more than 30 years, Qantas and American have connected the US and Australia as partners. This joint business means that we’ll be able to deepen this partnership to offer new routes, better flight connections and more frequent flyer benefits.”

A final decision from the DOT is expected in the next few weeks.

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