American and Qantas file Application to Form Joint Business

American Airlines and Qantas say they have filed an application with the US Department of Transportation (DOT) seeking approval to form a joint business “to better serve customers flying between North America and Australia and New Zealand.”

The two companies said their proposed joint business will significantly improve service, stimulate demand and unlock more than $300 million annually in consumer benefits that are not achievable through any other form of cooperation.  These include up to $221 million in value from expanding codesharing between American and Qantas – opening more connections to more destinations.  They add a further $89 million in value can achieved by offering a wider range of fare classes across each other’s networks, including lower fares and discounts.

The joint business will also give American and Qantas the opportunity to launch additional routes between the US and Australia and New Zealand, including new flights to city pairs currently not served by either carrier.