Subscribe


Travel Daily

TD breaking news – DOT proposes to deny Qantas/American Airlines antitrust immunity

US Govt says planned QF/AA alliance expansion would “harm competition”. 

Qantas’ plan to expand its alliance with oneworld partner American Airlines through antitrust immunity (ATI) has been dealt a blow after the US Department of Transportation said it proposed to disapprove the joint venture.

Under the earmarked new Joint Business Agreement, which already gained approval from the Australian competition watchdog back in Feb for a five-year term, Qantas and American sought approval to jointly plan and price services, as well as share revenue and costs between the USA and Australia/New Zealand. New routes were also planned under the joint venture.

QF/AA lodged the proposal to bolster their partnership 17 months ago, and hopeful of a green light, American Airlines launched daily services of its own on the busy Los Angeles-Sydney service last Dec.

“The Department is tentatively concluding that the proposed alliance expansion would harm competition in the US-Australian market, in particular in the large US-Australia market,” the DOT said a short time ago.

“By combining the airline with the largest share of traffic in the US-Australasia market with the largest airline in the United States, the proposed alliance would reduce competition and consumer choice,” the US regulator said.

It warned that an expanded and immunised alliance would account for nearly 60% of US-Australia seats, which along with enabling nearly 200 city-pair markets and likely deterring other new entry on the route, would lead to “a high risk of competitive harm from approving and granting antitrust immunity”.

“The existing marketing partnership between the Joint Applicants is providing American with feed and support for US-Australasian service today and could potentially continue to do so in the future without approval and grant of ATI,” the DOT said.

Currently, transpacific competitors Virgin Australia & Delta Air Lines, and Star Alliance partners United Airlines & Air New Zealand operate with ATI approval.

Qantas and American Airlines have 14 days to respond to the DOT’s proposed decision.

 

More in Monday’s issue of Travel Daily.


The above Breaking News Alert was sent to Travel Daily subscribers on 19 Nov 16

Make a comment...



Established in 1994, Travel Daily is Australia's leading travel industry publication, and is sent as a paid subscription to people across the industry as a PDF newsletter every weekday.

Register for Travel Daily trial subscription

To sign up for a free 14-day trial, click on the button at right.

Click here to see a sample issue of Travel Daily.

Click here for more information on subscriptions.

Alternatively, you can search our site or find other content below.

Recent Travel Daily articles

21 Jul

Travel Specials 21 Jul 17 - WELCOME to Travel Specials, Travel Daily's Friday ...


21 Jul

Celebrity Interview 21 Jul 17 - WITH Jean-Michel Cousteau ...


21 Jul

CAPA Insights 21 Jul 17 - CAPA Centre for Aviation today offers its ...


21 Jul

Window Seat 21 Jul 17 - A BABOON in Zambia has turned the ...


21 Jul

TravelCube Asia winners - TRAVELCUBE has announced the first of eight ...


21 Jul

Business as usual at AFTA agm - AFTA chairman Mike Thompson put in his ...


21 Jul

IATA bag tracking - THE International Air Transport Association (IATA) and ...


21 Jul

EY Regional sold - SLOVENIAN carrier Adria Airways has completed the ...


21 Jul

Obstacle event - THE inaugural World 24 hour Obstacle Course ...


21 Jul

3K adds VDH/CNX - TICKETS went on sale today for Jetstar ...


21 Jul

NT youth drive - TOURISM NT is targeting 18-35 year old ...


21 Jul

Hilton 48hr policy - HILTON is set to follow Marriott (TD ...


21 Jul

New GOC projects - THE Australian government has funded four projects ...


21 Jul

EK Moscow increase - EMIRATES will move to double daily A380 ...


21 Jul

APTMS recruits - ASIA Pacific Travel Marketing Services has announced ...


21 Jul

QF 787 tableware - QANTAS has unveiled a new range of ...


21 Jul

Describe your favourite childhood travel memory? - EVERY time I was out of school ...


21 Jul

US concerns remain - THE Association of Corporate Travel Executives (ACTE) ...


21 Jul

SkyBus tix via QBT - QBT'S corporate and government customers will soon ...


21 Jul

Air France names budget carrier Joon - AIR France's Boost project has sprung to ...



Show Travel Daily items by month: