ACCC grants interim approval to Qantas and American Airlines joint business agreement

Under the proposed JBA, the airlines will coordinate operations on services between Australia/New Zealand and the United States (the trans-Pacific routes), and on their respective services which support the trans-Pacific routes. Qantas and American Airlines do not currently compete directly on any routes.

Interim authorisation will enable the parties to undertake a coordinated sales and marketing campaign in both Australia and the United States. Qantas recently commenced services to Dallas/Fort Worth and has sought interim authorisation to support this service. The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The ACCC has sought submissions from interested parties on Qantas and American Airlines' substantive application for authorisation. A draft decision on the substantive application will be issued in August/September.

Further information, including the application and public submissions received, can be found on the ACCC's public register at www.accc.gov.au/AuthorisationsRegister