Qantas warns US services could be at risk if American Airlines joint venture rejected

Qantas says some flights between Sydney and the US could be at risk if a joint venture with American Airlines is blocked.

An American Airlines flights lands in Sydney.

Qantas has warned some services between Sydney and the US cities of Los Angeles and Dallas could be at risk if US authorities reject a proposed joint venture with American Airlines.

The Australian carrier has launched a new push for the joint venture, saying it could allow the carriers to launch up to 180,000 new trips each year between the US, Australia and New Zealand.

Qantas said the planned tie-up will allow both airlines to launch additional routes between destinations currently not serviced by either carrier. Both airlines will also be able to offer each other’s fares, discounts and fare classes under the deal.

It comes after the US Department of Transport issued a tentative decision in 2016 proposing not to approve the tie-up, after which both airlines committed to filing a new application after reviewing the order.

In a statement, Qantas said it is again seeking approval from the US Department of Transportation on the join-up.

But Qantas warned that if US authorities again rejected the deal, both carriers would be forced to reduce codesharing on their networks.

“This will jeopardise the number of services and routes each carrier flies between the US and Australia and New Zealand,” Qantas said.

“For example, Qantas may be forced to reduce the frequency of, downgauge or potentially cancel its A380 service between Sydney and Dallas/Fort Worth, and American may further reduce its services between Los Angeles and Sydney and Auckland.

“These routes rely on codeshare support from each airline’s feeder network via their respective hub cities to be economically viable.”

American Airlines senior cite president Art Torno, left, and Qantas CEO Alan Joyce, in 2015. Pic: Hollie Adams

Qantas said of the proposed joint venture: “An expanded relationship will encourage significant improvements in the overall customer experience, including more improved frequent flyer benefits and investments in lounges, baggage systems and other infrastructure designed to better serve the carriers’ joint customers.

“American and Qantas look forward to working together to deliver new routes, a more seamless travel experience, and greater access to lower fares under a joint business.”