Thread: AA and QF JV Approved

American & Qantas joint venture approved

Today the American & Qantas joint venture has been tentatively approved. The DOT has decided that this will protect competition and promote public benefits, including additional flights and increased seat availability.
As a condition of the approval, the DOT is proposing that American and Qantas report annually on the progress of their cooperation. This would allow the DOT to determine if this partnership is really in the public’s interest.

Expect...

• Improved mileage earning between American AAdvantage & Qantas Frequent Flyer (again, they cut mileage earning when the previous application was denied)
• Currently American’s Los Angeles to Sydney flight is operated by a 787-9, though I imagine we could see a capacity upgrade to a 777-300ER
• Currently American’s Los Angeles to Auckland route is seasonal, so I imagine we could see this go year-round again
• Qantas has been talking about launching nonstop flights to Chicago, so maybe we will finally see that launch
• While this is far from a sure bet, we could maybe see American operate flights on their own metal to Brisbane and/or Melbourne
• Over time we could see fare increases, since this joint venture is the equivalent of a competitor being eliminated in the market.

******Personally I do not believe this partnership will be successful as more Asian carriers will flood the Trans-Pacific routes thus creating more competitive pricing.

WHAT DO YOU THINK?