US DoT tentatively blocks American Airlines-Qantas application for anti-trust immunity for JV

US Department of Transportation (DoT) issued (18-Nov-2016) a Show Cause Order tentatively denying the application of American Airlines and Qantas to expand their existing alliance for services between the US and Australia/New Zealand.

• US DoT stated in reaching its tentative decision, it analysed traffic data, passenger bookings, and other evidence and tentatively found that the expanded alliance would create a potentially anti-competitive environment given the scale of the resulting joint business, which would account for approximately 60% of seats between the US and Australia;
• US DoT noted that consumers would have few remaining competitive options because the US-Australia/New Zealand markets are not well served by alternative routings over third countries;
• Comments and objections on this tentative decision can be submitted to the US DoT within 14 calendar days. Replies to any objections must be filed within seven business days from 02-Dec-2016. [more - original PR]