US DOT seeks to reject Qantas-American Airlines alliance expansion
Friday, 21 Nov, 2016
0
The US Department of Transportation has blocked the application of Qantas and American Airlines to expand their joint venture.
In a tentative ruling DOT said the alliance would be anti-competitive.
"By combining the airline with the largest share of traffic in the U.S.-Australasia market with the largest airline in the United States, the proposed alliance would reduce competition and consumer choice," it said.
"Given the degree of market concentration, the probability of such concentration further increasing with an integrated transoceanic, Qantas’ position in the market and its ability to charge a significant premium over other carriers, there is considerable risk of competitive harm."
The federal agency said it had received objections from both Hawaiian Airlines and JetBlue Airways.
American and Qantas had asked for anti-trust immunity to coordinate on US to Australasia routes.
American said it plans to file an objection to the ruling.
"This represents a significant departure from prior DOT decisions, which have long recognized the pro-competitive benefits of combining complementary international networks. Other airlines have the significant competitive advantage of antitrust immunity in the US-Australasia market. With the same opportunity, American and Qantas will be able to compete more effectively and increase consumer benefits in the market," said American spokesman Matt Miller.
Miller was referring to current joint venture agreements between Delta Air Lines and Virgin Australia and United Airlines with Air New Zealand.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...
Airlines suspend Madagascar services following unrest and army revolt
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps