American-Qantas Joint Venture approved (19 July 2019)
Jun 2, 2019, 10:31 pm
#1
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American-Qantas Joint Venture tentatively approved (2 Jun 2019)
Several sites reporting
The U.S. Transportation Department is expected to provide tentative approval to a bid by American Airlines and Qantas Airways to operate a joint venture, two people briefed on the matter said on 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.
https://www.cnbc.com/amp/2019/06/03/...s-venture.html
Could this mean more AA metal expansions?
The U.S. Transportation Department is expected to provide tentative approval to a bid by American Airlines and Qantas Airways to operate a joint venture, two people briefed on the matter said on 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.
https://www.cnbc.com/amp/2019/06/03/...s-venture.html
Could this mean more AA metal expansions?
Last edited by JDiver; Jul 19, 2019 at 4:15 pm Reason: Restore original post title
Jun 3, 2019, 7:57 am
#4
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"would let them coordinate prices and schedules, threatening to cancel services if it was rejected and arguing it could "unlock" up to $310 million annually in consumer benefits......"
Unlock $310 million in consumer benefits! This should be interesting.
Unlock $310 million in consumer benefits! This should be interesting.
Jun 3, 2019, 9:32 am
#5
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Time to scale back consumer benefits by about, oh $310 million.
Jun 3, 2019, 10:20 am
#6
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Well on the bright side since looking at this negatively is way too easy (lol), I would reckon that as with the other JV Partners, AA should align earnings on fares, so I am guessing that B/C accrual should go on eligible QF marketed flights up to 2x EQM up from 1.5x etc. At least that would be nice!
Safe Travels
Safe Travels
Jun 3, 2019, 10:32 am
#7
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Several sites reporting
https://www.cnbc.com/amp/2019/06/03/...s-venture.html
Could this mean more AA metal expansions?
https://www.cnbc.com/amp/2019/06/03/...s-venture.html
Could this mean more AA metal expansions?
IIRC, there was some preliminary conversations between AA and QF to consider allowing each others upgrade instruments (i.e. AA SWU) to be used on each others metal, but those ended when the original JV application was denied.
Jun 3, 2019, 10:45 am
#8
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Sydney Morning Herald has an article as well. Link.
American Airlines is confident the US transport regulator will soon decide whether to approve a proposed joint-venture with Qantas, which the airlines claim will give flyers $400 million a year in benefits...through connections to more destinations on each others' networks and access to cheaper fare classes when code-sharing.
They... share revenue and marketing costs on each others' Trans-Pacific flights.
They... share revenue and marketing costs on each others' Trans-Pacific flights.
Jun 3, 2019, 10:55 am
#9
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Or what will be a chance AA will do same as what happened to JFK-NRT/HND? AA discontinued JFK-NRT on own metal, have JL fly their metal and AA will simply code share. True, no use of SWUs on non-stop JFK-NRT/HND but possible that AA is selling more revenue F ticket on JFK-NRT/HND this way
Jun 3, 2019, 12:57 pm
#12
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From the CNBC article Antarius posted:
Qantas said last year the joint venture would allow the two airlines to "significantly improve service" and "stimulate demand." The airlines said the agreement could generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
Maybe I'm dumb or I wasn't paying attention that day in Master's program in business school. Can someone explain how a joint venture stimulates demand?
Qantas said last year the joint venture would allow the two airlines to "significantly improve service" and "stimulate demand." The airlines said the agreement could generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
Maybe I'm dumb or I wasn't paying attention that day in Master's program in business school. Can someone explain how a joint venture stimulates demand?
Last edited by writerguyfl; Jun 3, 2019 at 12:59 pm Reason: Fixing spacing.
Jun 3, 2019, 2:08 pm
#13
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There seems to be overcapacity on USA-Australia routes, especially LAX-SYD. At least during the southern hemisphere winter. If the JV goes ahead, it could result in AA cutting LAX-SYD, making it less than daily, or making it seasonal. This talk about "significantly improve service" and "stimulate demand" is just lip service - the airlines saying whatever they think regulators want to hear to get approval.
Jun 3, 2019, 2:24 pm
#14
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There seems to be overcapacity on USA-Australia routes, especially LAX-SYD. At least during the southern hemisphere winter. If the JV goes ahead, it could result in AA cutting LAX-SYD, making it less than daily, or making it seasonal. This talk about "significantly improve service" and "stimulate demand" is just lip service - the airlines saying whatever they think regulators want to hear to get approval.
Jun 3, 2019, 2:28 pm
#15
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From the CNBC article Antarius posted:
Qantas said last year the joint venture would allow the two airlines to "significantly improve service" and "stimulate demand." The airlines said the agreement could generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
Maybe I'm dumb or I wasn't paying attention that day in Master's program in business school. Can someone explain how a joint venture stimulates demand?
Qantas said last year the joint venture would allow the two airlines to "significantly improve service" and "stimulate demand." The airlines said the agreement could generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
Maybe I'm dumb or I wasn't paying attention that day in Master's program in business school. Can someone explain how a joint venture stimulates demand?
Now, how true this is, that's up for debate.
