INTERIM APPROVAL FOR QANTAS / AMERICAN AIRLINES SYDNEY

Qantas has welcomed the ACCC’s announcement today of interim approval of its proposed joint business agreement (JBA) with American Airlines.

The granting of interim approval is an important step towards closer commercial cooperation between Qantas and American on services between Australia and the United States, within the two countries and beyond.

Qantas Chief Executive Officer, Mr Alan Joyce, said the proposed JBA would result in significant benefits for Australian and U.S. consumers.

“This agreement has the potential to deliver better fares, improved connections and more frequent flyer benefits,” Mr Joyce said.

“It will build on Qantas’ new service to Dallas/Fort Worth, a key American Airlines hub. We codeshare with American to 52 destinations beyond Dallas/Fort Worth and both airlines are committed to further strengthening this relationship.

“Qantas has a strong global alliance network which we continue to expand. We work closely with British Airways on flights between Australia and Europe and expect the JBA with American to have similar consumer benefits.

“Membership of the oneworld alliance gives Qantas customers access to a group of world-class airlines in all regions of the world. This week we announced that Malaysia Airlines will join oneworld in 2012, increasing its reach in Asia, and following India’s Kingfisher Airlines and Germany’s Air Berlin.

“During 2010 we also added a number of new destinations to our codeshare partnership with China Eastern. These partnerships increase choice and convenience for customers, and alliances will remain a key focus for Qantas in coming months.”

The key elements of the proposed Qantas / American JBA are:
? Joint strategic planning and management of trans-Pacific services and ‘behind and beyond’ services
within Australia/New Zealand and North America.
? Improvement of flight schedules, frequencies and connection times to benefit Qantas and American
customers.
? Joint pricing initiatives resulting in more competitive fares and new fare products, and joint marketing of
services.
? Increased opportunities for customers of each airline to earn and redeem frequent flyer miles/points on
services operated by the other.
? A streamlined offering for corporate customers and for travel agents.
? The ability to coordinate pricing for the sale of Australia and New Zealand package destinations by AA
Vacations, American’s holiday business affiliate.

Qantas and American have also filed an application for authorisation with the New Zealand Minister of Transport and have asked the U.S. Department of Transportation to review the agreement.