American Airlines Group and Australian airline Qantas recently filed an application with the U.S. Department of Transportation for regulatory approval to form a joint business.
The proposed venture would serve customers flying between Australia-New Zealand and North America and allow the airlines to add routes not served by either one.
The joint business “will generate significant consumer benefits not achievable through other means and does not result in any lessening of competition,” American said.
According to the application, the proposed business would add up to $221 million in value from adding more routes and up to $89 million in value from offering a wider range of fare classes across each other’s networks. More fares would mean discounts, additional frequent-flyer benefits, and lower fares.
The carriers also would invest in baggage systems, lounges, and other infrastructure.
The carriers estimate this will generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
If the application is not approved, the carriers will reduce code-sharing on their networks.
This is the carriers second attempt at a joint business. In 2016, their application was denied because the carriers would control 60 percent of nonstop capacity between the United States and Australia, which would hurt competition.