QF-AA alliance all OK
Australia’s competition watchdog has approved Qantas’ proposed alliance with American Airlines on trans-Pacific routes.
The Australian Competition and Consumer Commission (ACCC) says the agreement would not have any anti-competitive effects, given the two carriers do not currently have any overlapping direct services between the US and Australia or New Zealand.
The ACCC said the 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.
Apart from scheduling, Qantas and American aim to coordinate pricing, revenue management, marketing, and reciprocal frequent flyer benefits.
Qantas has said the deeper partnership with its oneworld alliance partner American would 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.
It would also facilitate Qantas moving to a daily service between Australia and Dallas/Fort Worth – the largest hub city of American – from four times a week currently, as soon as possible.
Ian Jarrett
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