The US DoT is expected to provide tentative approval to a bid by American Airlines Group and Qantas to operate a joint venture, two people briefed on the matter said Sunday. The department is expected to issue an order tentatively approving the joint business agreement and tentatively granting antitrust immunity, according to the sources, who spoke on condition of anonymity. The order, which is expected as early as Monday and would be subject to public comment, is likely to include conditions to protect competition and allow for government oversight of the venture, the sources added. The application by American and Qantas for a joint venture covering the US, Australia and New Zealand was tentatively rejected in November 2016 by former President Barack Obama’s administration amid opposition from rival carriers Hawaiian Airlines and JetBlue. Regulators in Australia and New Zealand approved the first application for the joint venture before it was rejected by the US DoT. An American Airlines spokeswoman said on Sunday the airline feels “we have made a compelling case about the benefits of the joint business for customers, and there was no opposition raised to our proposal. We’re hopeful the Qantas joint business will be approved.” The revised application made significant changes including removing a provision that would have barred either carrier from codesharing with other carriers. <br/>
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Malaysia Airlines is reviewing whether to go ahead with a $2.75b order to buy 25 of Boeing’s 737 Max jets in the wake of two fatal crashes that's led to the global grounding of the plane, a person familiar with the matter said. Though the state-run airline hasn't made any decision, it wants Boeing’s reassurances about the plane’s safety before proceeding further, said the person, who asked not to be identified discussing a private matter. The Malaysian carrier's situation adds to the growing number of airlines wavering on Boeing's fastest-selling jet. Garuda Indonesia has said it no longer wants to buy the 737 Max planes it ordered, while Lion Air is said to be seeking to drop its order. In 2016, Malaysia Airlines agreed to buy 25 737 Max 8 jets from Boeing, with an option to double the order, which would bring the total value of the deal to $5.5b. None of the planes has been delivered yet. Boeing has begun mapping out steps to ease its 737 Max back into commercial service once regulators lift the grounding, but there’s no clear timeline on when that may happen. The International Air Transport Association, the biggest association of airlines, has forecast it doesn’t expect a decision for as long as 12 weeks.<br/>
Flights half way around the globe are set to be even less comfortable than expected -- that’s if the marathon 20-hour non-stop services from Sydney to London get off the ground at all. Qantas Airways has ditched the notion of rolling out bunks, beds, a gym or even a creche for passengers enduring the world’s longest commercial flight. Instead, they’ll be given a space to have a stretch and a drink of water, Qantas CEO Alan Joyce said Monday. The more spartan comfort levels underscore Qantas’s challenge as it tries to break through what it calls aviation’s last frontier. There are other barriers, too: While Joyce said the planes proposed by Boeing and Airbus for the ultra long-haul flights can make the distance, neither can carry the weight that Qantas initially targeted. Joyce said he still needs Qantas pilots to agree to the longer working hours the ultra-long flights will entail. “There are a significant number of hurdles to overcome but we think we can make this work,” he said. “There’s still not full payload on each aircraft, but there’s enough we think to make it commercially viable if the other parts of the business case get there.” Qantas expects to receive final aircraft proposals from Boeing and Airbus by August. That will include the price of the plane, as well as guarantees on fuel efficiency, maintenance costs and reliability. Joyce said he’ll order the jets by year-end if he decides to push ahead with the flights, which are known at Qantas as Project Sunrise.<br/>