American Airlines & Qantas JV to receive tentative U.S. approval
By Akshay Kedari  Date: 2019-06-03

American Airlines & Qantas JV to receive tentative U.S. approval

The U.S. Transportation Department would reportedly provide tentative approval to a proposal by American Airlines and Qantas Airways to run a joint venture, claimed sources close to the deal.

As per trusted sources, the department is projected to issue an order tentatively sanctioning the joint business agreement and tentatively providing antitrust immunity. The order, which is expected at the earliest, would depend on public comment, and will possibly include conditions to shield competition and permit government oversight of the venture.

Shannon Gilson, American Airlines spokeswoman said in a statement that the airline believes it has made a convincing case regarding the customer benefits of the joint venture, with no opposition raised against the proposal. Gilson further mentioned that the company is hopeful the joint venture with Qantas will be approved.

In 2016, the application for the joint venture covering Australia, New Zealand, and the United States was tentatively rejected by former President Barack Obama’s administration owing to opposition from rival carriers JetBlue Airways and Hawaiian Airlines.

In 2018, the companies made their second attempt under the administration of President Donald Trump for a project that would allow them to coordinate prices and schedules. The revised application reportedly made substantial changes including the elimination of a provision that would have banned either carrier from codesharing with other carriers, cited sources familiar with the matter.

Moreover, in their 2018 application, the airlines claimed that the venture would reduce fares and enhance capacity as a more feasible third competitor, thus persuading other carriers to improve quality, schedules, and price.

Presently, both American Airlines and Qantas rely on codeshare agreements to make certain routes economically viable and on receiving final approval, the two would be able to offer more flights, even to cities not currently served by either, the companies stated.

For the record, U.S. regulators have approved a similar joint ventures for United and Air New Zealand in 2001 and the Delta Air Lines and Virgin Australia venture in 2011, reported sources.

Source Credit
https://www.cnbc.com/2019/06/03/us-set-to-grant-tentative-approval-to-american-airlines-qantas-venture.html

About Author

Akshay Kedari    

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Abcam & Cancer Research UK join forces to accelerate cancer research
Abcam & Cancer Research UK join forces to accelerate cancer research
By Akshay Kedari

Cancer Research UK, one of the world's biggest independent funder of cancer research, has recently joined forces with Abcam plc, a leading developer of life science tools and reagents, to commercialize and develop novel custom antibodie...

Kerbal Space Program unveils new ESA missions simulation update
Kerbal Space Program unveils new ESA missions simulation update
By Akshay Kedari

Kerbal Space Program, a space flight simulator video game, has launches its new Shared Horizons update across the European frontier. Reportedly, this new update would allow players to recreate ESA (European Space Agency) missions to Mercury and to a ...

Google acquires Canadian augmented reality wearables firm North
Google acquires Canadian augmented reality wearables firm North
By Akshay Kedari

In a recent turn of events, a Canada based augmented reality (AR) wearables company North, has reportedly been acquired by Google for an undisclosed valuation. Based on the reports from Globe and Mail, the deal accounted for USD 180 million. For tho...

Librestream raises $24M through CBGF-led Series-D funding round
Librestream raises $24M through CBGF-led Series-D funding round
By Akshay Kedari

Winnipeg based augmented worker enterprise solutions provider, Librestream, has reportedly raised an amount of $24 million through a Series-D funding round led by Canadian Business Growth Fund (CBGF). The company will use the procured funds to boost ...

John Lewis to soon unveil its biomethane gas filling station
John Lewis to soon unveil its biomethane gas filling station
By Akshay Kedari

UK-based retail giant, John Lewis Partnership has recently announced construction of its dedicated biomethane gas filling station in an effort to curb carbon emission. This move is deemed to be a part of the its vision to become carbon neutral across...