Airlines Qantas and American Airlines to sign Joint Business

A new application was sent to the US Department of Transportation (DOT) and Qantas and American Airlines are now hoping for approval. With the joint business, the carriers hope to enhance the customers flying experience between North America and Australia, as well as New Zealand.

According to a statement, the business will unlock over $USD 300 million through customer benefits. This includes the created value by codeshare agreements between the airlines, which is likely to be up to $USD 221 million. Furthermore, a value of $USD 89 million is being created by offering a widened range of fare classes in each other´s networks. This implies lower fares in general and discounts in ticket prices.

With the joint business set up, both American Airlines and Qantas will have the opportunity to launch further routes between the US and Australia and New Zealand, which are not yet in the network of either carrier.

The joint business will also have its impact on the overall customer experience. The airlines are said to invest in lounges and in improved benefits for their frequent flyer programmes. Furthermore, baggage systems and other infrastructure will be enhanced.

If the business is not being approved by the DOT, Qantas and American Airlines will have to further reduce code-sharing on their networks. This may result in the cancellation of Qantas´ A380 service to Dallas/Fort Worth, whereas American would have to reduce services on its Los Angeles to Sydney and Auckland routes.

By fleet size, American Airlines is the biggest airline in the world. The US-American carrier operates with a total of 948 aircraft, including regional jets and long-haul aircraft. American is headquartered in Fort Worth, Texas and has hubs in Chicago, Miami, Los Angeles, New York, Philadelphia, Phoenix, Washington and Charlotte.

Qantas Airways is the flag carrier of Australia and operates with 122 aircraft. The airline is headquartered in Sydney and has operating hubs in Brisbane, Melbourne and Sydney. Both American Airlines and Qantas are members of the Oneworld alliance.