American Airlines CEO and oneworld chairman Tom Horton stated (03-Jun-2013) during a oneworld briefing at the IATA annual general meeting in Cape Town that “with SriLankan and Qatar, oneworld will be the leading alliance in the India sub-continent”. Mr Horton said Qatar Airways is on track to join oneworld in late 2013 and SriLankan Airlines in early 2014. Mr Horton said that the decision by Brazilian carrier TAM to leave Star Alliance and join oneworld in 2014 “solidifies oneworld’s leading position in the Americas”.
IATA AGM 2013: oneworld to be leading alliance in South Asia: Horton
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oneworld, in a complex solar system
oneworld is the smallest in size of the three global alliances but advertises itself as highest quality in terms of members and awards received. oneworld has strength in financial centres, is the alliance for the world’s largest airline (American) and with LATAM is a powerhouse in Latin America. It is also the loosest of the three major alliances, often described as more of a linked collection of bilateral partnerships.
US DOT rejects Qantas-American Airlines joint venture under pressure of unchecked consolidation
After complaints about airlines amassing power through joint ventures to the detriment of consumers, the US DOT appears to be exerting greater and more conservative scrutiny on partnerships. DOT has rejected a proposed JV between American Airlines and Qantas. After DOT declined their request for a much longer response time American and Qantas withdrew their application, submitted in Jun-2015.
At a top level the JV does seem to raise concern: combined, Qantas and American would hold 59% of the US-Australia market. Yet almost all of that – 53% – is from Qantas; American adds only 6ppt.
DOT rejects the notion that such larger market share can possibly be in the interest of consumers. Yet it appears to overlook the benefit American might bring in exchange for incremental market share gains. Nor is it clear if this combination is more anti-competitive than some JVs where two airlines, each with a small- or medium-sized position, combine and become multiples larger. Qantas' 53% market share was earned through quality and smart loyalty programme development while competitors lagged.
Qantas will continue growth in North America, its most successful international market, but American Airlines' growth is uncertain and it may re-evaluate a supposedly planned Los Angeles-Melbourne 787 service.