Qantas says the newly approved partnership with American Airlines (AA) is a key plank in turning around the airline’s loss-making international operations.
The competition regulator has given the green light to Qantas’s proposed alliance with AA on trans-Pacific routes, allowing the two carriers to work together on pricing, marketing and frequent flyer benefits.
Qantas group executive commercial Rob Gurney said the tie-up would give passengers more choice and was part of the airline’s five-year plan to improve the Flying Kangaroo’s international business.
In particular, Qantas’s flights to AA’s largest hub city, Dallas/Fort Worth, which commenced in May, would give passengers “unprecedented” access to North America.
“Developing a strengthened alliance network based around major hub airports is a key aspect of the Qantas Group’s gateway strategy to revitalise its international operations,” Mr Gurney said in a statement.
The Australian Competition and Consumer Commission (ACCC) said the joint business agreement (JBA) with AA would not have any anti-competitive effects, given they did not have any overlapping direct services between the US and Australia or New Zealand.
Qantas already has a similar arrangement with British Airways on flights between Australia and Europe.
ACCC chairman Rod Sims said the tie-up agreement would provide both carriers with the incentive to offer new fare products, “which may result in lower fares on many trans-Pacific routes”.
The airlines’ application is also before the US Department of Transportation and the New Zealand Minister of Transport.
The ACCC decision comes not long after regulators in both Australia and the US approved an alliance between Virgin Australia and Delta Air Lines on trans-Pacific services.
Meanwhile, Qantas was also hoping to forge a deeper ties with fellow oneworld member LAN Chile as it moved closer to starting flights to Santiago next year as part of a restructure of its international operations.
Tickets for the thrice-weekly service to Santiago, Chile, due to start in late March next year, went on sale on Thursday. LAN will codeshare on the route, Qantas said.
In other Qantas news, the airline’s monthly passenger numbers showed the airline group carried 6.7 per cent more travellers in August, compared with the same months a year ago.
Qantas fell three cents to close at $1.42.