Qantas and American Airlines Seek Approval for JBA

Qantas and American Airlines are seeking regulatory approval for a joint business agreement (JBA) on their services between Australia / New Zealand and the United States, within the these regions and beyond to third countries.

If approved, the JBA will create a new strategic partnership between Qantas and American involving close commercial cooperation and will enable the airlines to maximize the advantages of Qantas' new service to American's primary hub, Dallas/Fort Worth (DFW), which commences this week.

Qantas has filed an application for authorization of the JBA with the Australian Competition and Consumer Commission (ACCC) and will file an application with the New Zealand Minister of Transport. The U.S. Department of Transportation will also review the agreement.

The key elements of the JBA are:

- Joint strategic planning and management of trans-Pacific services and 'behind and beyond' services within Australia/New Zealand and North America.

- Improvement of flight schedules, frequencies and connection times to benefit Qantas and American customers.

- Joint pricing initiatives resulting in more competitive fares and new fare products, as well as joint marketing of services.

- Increased opportunities for customers of each airline to earn and redeem frequent flyer miles/points on services operated by the other. ■A streamlined offering for corporate customers and for travel agents.

- The ability to coordinate pricing for the sale of Australia and New Zealand package destinations by AA Vacations, American's outlet for discount vacation packages.

Group Executive Qantas Airlines Commercial, Rob Gurney, said the JBA will take the strong relationship between oneworld partners Qantas and American to the next level.

"This agreement has the potential to make travelling between Australia and the United States – and beyond – considerably more attractive for our customers, with better fares, improved connections and increased frequent flyer benefits," Gurney said.

The approval process with the ACCC is expected to take about six months.

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