oneworld

American Airlines is confident the US transport regulator will soon decide whether to approve a proposed joint-venture with Qantas, which the airlines claim will give flyers US$400m a year in benefits. The two alliance partners applied to Australian and US regulators 4 years ago in 2015 to approve a tie-up that would see them share revenue and marketing costs on each other’s Trans-Pacific flights. The Australian Competition and Consumer Commission waved it through but the US DoT knocked it back because of the two airlines' market power. Qantas and American control 60% of traffic between Australia and the US. Kurt Stache, a senior VP at American Airlines, said the airline expected a decision on a revised application, submitted early last year, was not far off. <br/>

Cathay Pacific's pending acquisition of Hong Kong Express is just one element of its preparation to take advantage of growth opportunities afforded by the coming opening of a third runway at its Hong Kong base. HK Express will give Cathay a "running start" to rapidly expand in the low-cost segment once the new runway opens in 2024, says the carrier's chairman John Slosar. Cathay previously shied away from the low-cost strategy pursued by many of its peers. However, pressure from growing regional budget brands like AirAsia and Jetstar, and Chinese carriers, prompted it in 2017 to embark on a transformation programme to remain competitive. That effort, Slosar says, has included everything from identifying cost savings to generating additional revenue and, now, adding a low-cost carrier to its portfolio. <br/>