Ultra-Long Flight at Risk as Qantas, American Renew Pacific Push
In its 2016 decision to deny the airlines' previous application, the DoT had said that approving the partnership could "create a potentially anticompetitive environment given the scale of the resulting joint business, which would account for approximately 60 per cent of seats between the U.S. and Australia".
American Airlines and QANTAS have filed a new application with the United States Department of Transport (DOT) seeking approval to form a joint business agreement (JBA) for services between North America and Australia/New Zealand.
A rejection of this application, the airlines said, would result in American slashing their number of domestic USA routes that it codeshares with Qantas on from 125 to just 27. The Fort Worth-based carrier estimates up to 180,000 new trips annually from the joint venture.
The airlines have stated that they expect the joint business to further add some 180,000 new trips per year between the U.S. and Australia and New Zealand. Regulators in Australia and New Zealand had earlier approved the tie-up.
American and Qantas have cooperated on services between the United States and Australasia for decades, but their relationship has never extended to revenue-pooling, which has limited their willingness and ability to cooperate and caused them to miss opportunities for significant efficiencies, the application says.
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The statement added that a rejection could result in Qantas reducing the frequency of, downgrading or even cancelling its A380 service between Sydney and Dallas/Fort Worth, while American may further reduce services between Los Angeles and Sydney and Auckland.
Since then co-operation between the airlines has, by economic necessity, retrenched, they say in today's application.
The two carriers codeshared on about a hundred flights a week in November 2016, when their application for antitrust immunity was tentatively rejected by the DOT, FlightGlobal schedules data show. It's scheduled to start 17-hour flights between Perth and London next month. For example, American has made its Los Angeles-Auckland service seasonal.
American says Qantas may be forced to reduce or cancel its Airbus A380 service between Sydney and Dallas/Fort Worth, while American may reduce flights from Los Angeles to both Sydney and Auckland, if approval is not granted by USA regulators."These routes rely on codeshare support from each airline's feeder network via their respective hub cities to be economically viable", says American.
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