Qantas and American Try Again

After a failed attempt to authorize a partnership in 2016, Qantas and American Airlines are asking regulators again to approve a joint venture between the two airlines that they say will benefit consumers looking to travel to Australia and New Zealand.

Back in November 2016, Qantas and American Airline proposed a joint venture to U.S. regulators that would allow the two airlines to share costs and revenue on collaborative flights. The regulators at the U.S. Transportation Department, though, said an agreement like that would hurt competition, and both airlines needed to have more evidence that it would be beneficial.

Now, the airlines are trying again, bolstered by the Trump administration, believing that the climate to have the venture approved this time is more favorable. They want to coordinate fares and schedules and in this request, cite a study showing that partnerships like this benefit consumers and lower fares.

The two airlines working together, American said in the filing reported by Bloomberg, “will generate significant consumer benefits not achievable through other means and does not result in any lessening of competition.”

American also noted that without approval of the venture, the airline will have to reduce codesharing, which could negatively impact flights between the U.S. and Australia and New Zealand.

In a similar statement released by Qantas, the airline said that if the partnership isn’t approved, it will likely have to cancel its route between Sydney and Dallas, because the only reason that route is economically viable is thanks to codesharing.

The two airlines expect the joint venture would bring in up to 180,000 new customers and lower fares annually by $89 million.

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