American Airlines-Qantas JV facing turbulence again
American Airlines’ transpacific joint venture proposal with Qantas is facing more delays after the US Department of Transportation ordered more detailed information from the carriers.
DOT officials wants to know what the specific levels of service will be as a JV and how the airlines will share revenue.
It also wants more clarification on expected benefits to the consumer and financial data of xisting flights.
"When the additional evidence requested has been submitted, we expect to have all the necessary elements to determine that the record is substantially complete and to establish a procedural schedule,” the DOT said in its order.
The amount of new information requested will likely mean a lengthy delay, which is not something the carriers had bargained for.
It is the second attempt at a joint venture after they filed for anti-trust immunity back in 2016.
That was called off due to similar regulatory reservations and it was only revived when the airlines expected a more business friendly environment after the election of President Trump.
The Australian regulator had approved the JV without any major concerns.
Following the latest DOT order, the two airlines said some existing routes could be under threat if a deeper partnership is not approved.
This includes Qantas’ Sydney-Dallas/Fort Worth and AA’s Los Angeles-Sydney services.
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