Feds block joint venture between American Airlines and Australia's Qantas

The Department of Transportation tentatively blocked a bid by American Airlines and Qantas Airways on Friday that would have allowed the carriers to cooperate more closely on flights between the U.S. and Australia.

In its ruling, the DOT said there was a “high risk of competitive harm” by allowing the largest U.S. carrier and the largest Australian carrier to enter into a joint venture.

These types of “metal-neutral” alliances allow airlines to work closely together to coordinate schedules and sell seats on each other's flights, all while splitting the collective revenue and costs regardless of which carrier’s plane is used on a given route.

American has these agreements with Japan Airlines on trans-Pacific flights and with British Airways, Iberia and Finn for flights across the Atlantic.

Read more: http://www.dallasnews.com/business/american-airlines/2016/11/18/dot-blocks-joint-venture-american-airlines-australias-qantas