American & Qantas Submit Joint Venture Application (Again)

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In November 2016, the US Department of Transportation blocked the expanded joint transpacific joint venture that American and Qantas had requested. Interestingly the expanded joint venture was approved by Australian authorities, while the US thought that the proposed alliance would substantially reduce competition and consumer choice, without producing sufficient countervailing public benefits.

American and Qantas seemed pretty confident that their request would be approved. On the basis of the joint venture being approved, American launched flights from Los Angeles to both Sydney and Auckland.

So they were quite disappointed when it was rejected. However, rather than appealing the decision right away, they decided on a different strategy. They planned on refiling once Trump was in office, hoping that his administration would take a different approach — American First, if you will. 😉