Move FM Australian News

WASHINGTON DC – THE U.S. Department of Transportation has tentatively approved an application by U.S. and Australian carriers, American Airlines and Qantas Airways, to operate a joint venture between the United States and Australia/New Zealand.

If final approval is given it will enable the airlines to coordinate their planning, pricing, sales, and frequent flyer activities to offer customers a single proposition on trans-Pacific flights.

The proposed action by the Department is described in a Show Cause Order that tentatively approves the joint venture and tentatively makes a grant of antitrust immunity to enable the carriers to implement the arrangements.

The order includes conditions designed to protect competition, promote public benefits, such as additional flights and increased seat availability, and enable the department to monitor the effects of the joint venture and its impact on consumers.

The department says it is proposing that American and Qantas report annually on the progress of their commercial cooperation and provide a detailed assessment after seven years.

This would undergo a comprehensive, data-driven review by the department based on clear benchmarks laid out in the Show Cause Order. The proposed joint venture would be the third in these markets.

The Show Cause Order is a first step. Interested parties have 14 calendar days from the service date of the Show Cause Order to file answers and seven (7) business days from that date to file replies.

The department said in a statement Monday that it will then review any comments and prepare a final decision.

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