Qantas and American Airlines to re-submit application to US DoT for JV extension

Qantas and American Airlines announced (27-Jan-2017) they will re-file an application with the US Department of Transportation (DoT) seeking anti-trust immunity for the expansion of their joint business arrangement.

• The airlines have reviewed the US DoT's Nov-2016 Show Cause Order proposing not to grant approval for their original application and, after considering their options, taken the decision to refile "in the coming months";
• The carriers take the view that the DoT decision "didn't take into account precedent, intense competition on trans-Pacific routes, or the benefits that a closer relationship between Qantas and American has already delivered, including two new routes";
• The new application will "make a strong case for the full consumer, tourism and trade benefits that would come with anti-trust immunity."

Qantas and American also plant to scale back areas of cooperation that aren't viable without immunity, including the following changes:

• Qantas will no longer codeshare on American Airlines' services between Sydney and Los Angeles, effective 01-Feb-2017;
• Qantas will adjust its Qantas Frequent Flyer policy with American Airlines to bring it in line with other oneworld carriers from 01-May-2017. [more - original PR]