CANBERA (dpa-AFX) - The Australian Competition and Consumer Commission said on April 1 that it has granted interim authorisation to Qantas Airways Limited (QUBSF.PK) and American Airlines Inc., allowing them to continue cooperating on trans-Pacific routes while it completes its assessment of a broader application.
The interim authorisation enables the airlines to maintain their alliance operations across routes between Australia and New Zealand and North America, including the United States, Canada and Mexico, ensuring no disruption to existing services as the review continues.
The ACCC said the substantive application follows a request lodged in November last year by Qantas and American Airlines for the revocation and substitution of their existing authorisation.
Under the application, the airlines are seeking approval to continue their joint business through a Restated Joint Business Agreement and associated arrangements, covering coordination of operations between and within Australia and the United States, New Zealand, Canada and Mexico.
The proposed arrangements include coordination of schedules and inventory, management of service capacity, revenue sharing, cost reduction initiatives and synergies, tariff setting, joint marketing, frequent flyer program cooperation, coordination of commercial relationships with other airlines, and information sharing between the two carriers.
The applicants are seeking authorisation for a period of five years and the ACCC is now undertaking a detailed assessment.
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