'Significant risk' of discontinuation of Los Angeles services to Auckland and Sydney without ATI

4 September, 2018

Qantas and American Airlines stated (29-Aug-2018) without US Department of Transportation anti trust immunity (ATI) for their proposed trans Pacific joint business agreement (JBA), American expects negative impacts to profitability, RASK, yield and load factor on Los Angeles-Sydney and Los Angeles-Auckland services. The carriers further added there is "significant risk" that these services will be discontinued in the absence of ATI. As previously reported by CAPA, the carriers forecast consumer benefit of up to USD310 million p/a from increased connectivity, not counting improvements resulting from increased investment in travel to Australasia. [more - original PR]