American Airlines and Qantas gain approval to form joint endeavor


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American states it now has “the opportunity to launch new routes and provide enhanced service with better schedules.” 

American Airlines

American Airlines and Qantas have actually gotten approval to form a joint endeavor from the United States federal government. The Department of Transportation on Friday licensed the joint endeavor to collaborate their flight strategies and prices, regular leaflet programs and sales, Reuters reported previously.

The 2 airline companies are currently both part of the OneWorld Alliance, which suggests Qantas members can make regular leaflet points on American flights and vice versa. The joint endeavor would enable much better coordination, additional capability on existing flights and 3 brand-new flight paths in the next 2 years, according to Reuters.

The Transportation Department verified the approval to CNET, stating the last OKAY follows the draft choice in June. It would benefit customers by supplying more flights and more seats, the department stated in a declaration.

“The carriers are now expected to begin coordinating their planning, pricing, sales and frequent flyer activities to offer customers a single proposition on trans-Pacific flights, with new options and customer service enhancements,” the Transportation Department stated Friday. It included that American Airlines and Qantas are to report yearly on the collaboration.

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American Airlines welcomed the decision, saying they’ll “offer more products that will better serve customers flying between the United States and Australia and New Zealand.”

“We now have the opportunity to launch new routes and provide enhanced service with better schedules, additional frequent flyer benefits and continued investments in the overall customer experience,” said Doug Parker, CEO of American. 

Qantas added the agreement would mean reduced travel time and lower fares, as well as more routes — beginning with direct flights from Brisbane, Australia, to San Francisco and Chicago. These new routes will operate on the Dreamliner aircraft, to launch by April 2020, and will “add more than 170,000 seats across the Pacific each year.”

A joint venture between the two was originally rejected in 2016, Reuters said, when the Obama administration concluded after a year-and-a-half-long review that such a partnership would decrease choice and competition.

First published July 19, 1:23 p.m. PT.  
Update 1:49 p.m. PT: Adds confirmation, statements from American and the Transportation Department. Update, 3:29 p.m. PT: Adds comments from Qantas.

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