Qantas Airways’ bid to forge closer ties with its alliance partners is a step closer after the competition regulator approved a joint-venture with US-based American Airlines.
The Australian Competition and Consumer Commission (ACCC) said the two carriers could work together on trans-Pacific flights, including scheduling, marketing, pricing, revenue management and bidding for corporate contracts.
There was also the possibility of new and improved routes under the joint business agreement (JBA), according to the ACCC’s draft determination released on Monday.
The JBA was “unlikely to result in any public detriment”, the regulator said.
“The ACCC does not consider that the JBA will have any anti-competitive effects, as Qantas and American Airlines do not currently provide any overlapping direct services between Australia and the United States,” ACCC chairman Rod Sims said in a statement.
Currently, American Airlines places its code on Qantas’ flights between Australia and the US, such as Melbourne-Los Angeles, Sydney-Dallas/Fort Worth and Sydney-Honolulu.
The two carriers also codeshare on selected flights within each other’s domestic networks.
Chief executive Alan Joyce said last week Qantas was keen to deepen its partnerships with other airlines and increase flying into regional “gateways” as part of turning around its loss-making regional operations.
As an example, Mr Joyce cited new services this year from Australia to Dallas/Fort Worth, the largest hub city of fellow oneworld alliance member American Airlines.
Qantas was also looking to establish ties with Malaysia Airlines.
The JBA would facilitate moving to a daily service between Australia and North Texas, up from four times per week currently, as soon as possible.
It would also offer passengers more one-stop connections within the US, as well as Canada and Mexico, and cheaper flights within the US under a simplified fare structure.
Qantas is due to release its 2010/11 full year profit result on Wednesday.
The airline’s shares closed down three cents at $1.42.
