US set to grant tentative approval to American, Qantas venture - sources

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/>