June 10, 2011

Mr. Todd Homan

Director, Office of Aviation Analysis

Department of Transportation

1200 New Jersey Avenue SE

Washington, DC 20590

Re: AA/QF Joint Business Agreement, DOT-OST-20110 0111

Dear Mr. Homan:

Attached is a copy of the Australian Competition & Consumer 

Commission (ACCC) Interim Authorization Decision issued June 9, 2011

concerning the American/Qantas Joint Business Agreement. As stated in 

the Decision, “the applicants do not currently compete directly on any 

routes, and are unlikely to do so absent the JBA,” and the ACCC 

“considers it reasonable for the applicants to implement the JBA at 

this stage, and have the opportunity to deliver the claimed public 

benefits.”

Respectfully submitted,

JAMES K. KALEIGH

Antitrust Attorney

American Airlines

P.O. Box 619616, MD 5675

DFW Airport, Texas 75261

james.kaleigh@aa.com

(817) 967-3478

cc: Peter Irvine

Grady Stone

Docket Branch Service List
AustralIan 

competftJon & 

Consumer 

Commwion 

Qantas Airways Limited & American Airlines IRC. 

applications for authorisation A91265 & A91266 

Interim authorisation decision 

9 June 2011 

DECISION 

The Australian Competition and Consumer Commission (the ACCC) has decided to 

grant interim authorisation in respect of the applications for authorisation lodged by 

Qantas Airways Limited (Qantas) and American Airlines Inc. (American Airlines) on 

12 May 2011. 

Interim authorisation commences immediately, and will remain in place until the date 

the ACCC's final determination comes into effect or interim authorisation is revoked. 

THE APPLICATION 

Qantas and American Airlines are seeking authorisation for a proposed Joint 

Business Agreement (lBA). Under the proposed .TBA, the airlines will 

coordinate operations on services between AustralialNew Zealand and the 

United States of America (the trans-Pacific routes), and on extensive Qantas and 

American Airlines services which support the trans-Pacific routes. The 

applicants propose to coordinate: 

• flying operations 

• scheduling 

• cargo 

• pricing and revenue management 

• sales and marketing 

• procurement. 

Qantas wifl operate trans-Pacific services and connecting services in Australia 

and on the trans-Tasman on behalf of the airlines. American Airlines will 

operate connecting services in the United States, Canada and Mexico. 
THE AUTHORISATION PROCESS 

The ACCC can grant immunity from the application of the competition provisions of 

the Competition and Consumer Act 2010 (the Act) if it is satisfied that the benefit to 

the public from the conduct outweighs any public detriment. The ACCC conducts a 

public consultation process to assist it to determine whether a proposed arrangement 

results in a net public benetit. 

INTERIM AUTHORISATION 

Section 91 of the Act allows the ACCC to grant interim authorisation without making 

a decision on the merits of the application. 

The ACCC will only grant interim authorisation in appropriate circumstances. In 

many circumstances it is not appropriate to do so because interim authorisation allows 

an applicant, for a limited period, to engage in conduct before the ACCC has been 

able to fully assess whether the conduct satisfies the authorisation test. 

CONSULTATION 

Upon receipt of the application for authorisation, the ACCC invited submissions from 

approximately 90 interested parties in order to consider the request for interim 

authorisation. 

The ACCC received a submission from Virgin Australia, which queried whether the 

commercial imperatives on which the application for interim authorisation was based 

are stiH applicable; whether Qantas would still continue to otTer the Dallas/Fort Worth 

services even if it did not obtain authorisation for the alliance; and how the applicants 

would unwind the alliance if final authorisation were not granted. 

REASONS FOR DECISION 

In granting interim authorisation the ACCC has taken into account that: 

• the ability to undertake a coordinated sales and marketing campaign in both 

Australia and the United States is likely to be necessary to generate the 

sustained level of demand required to ensure the viability of the SydneyDallas/Fort Worth services 

• without the ability to cooperate, the current frequency of these services may not 

be sustainable and expansion to daily services may not be possible. In addition, 

the enhanced connectivity, lower fares and new fare products envisaged under 

the lBA would not be available to passengers 

• the applicants do not currently compete directly on any routes, and are unlikely 

to do so absent the lBA. 

The ACCC considers it reasonable for the applicants to implement the lBA at this 

stage, and have the opportunity to deliver the claimed public benefits. 

The ACCC considers it unlikely that granting interim authorisation will result in 

permanent changes to the relevant markets. 
RECONSIDERATION OF DECISION 

The ACCC may review its decision on interim authorisation at any time. The 

ACCC's decision in relation to interim authorisation should not be taken to be 

indicative of whether or not final authorisation will be granted. 
CERTIFICATE OF SERVICE

I hereby certify that I have this day served the foregoing document by email 

on the following persons:

sascha.vanderbellen@delta.com jhill@dlalaw.com

scott.mcclain@delta.com bill@mietuslaw.com

sametta.c.barnett@delta.com mgoldman@sgbdc.com

kquinn@pillsburywinthrop.com rsilverberg@sgbdc.com

bkeiner@crowell.com dhainbach@ggh-airlaw.com

esahr@eckertseamons.com mcmillin@woa.com

bruce.rabinovitz@wilmerhale.com eskraft@jamhoff.com

thomas.bolling@coair.com dpdean@jamhoff.com

bob.kneisley@wnco.com dkirstein@yklaw.com

robert.land@jetblue.com jyoung@yklaw.com

msinick@ssd.com william.stallings@usdoj.gov

cdonley@ssd.com dwight.moore@ustranscom.mil

gbleopard@fedex.com john.allen@faa.gov

david.heffernan@wilmerhale.com urskr@state.gov

kevin.montgomery@polaraircargo.com recohn@hoganlovells.com

jrichardson@johnlrichardson.com cjsimpson@zsrlaw.com

lhalloway@crowell.com pmurphy@lopmurphy.com

efaberman@wileyrein.com lachter@starpower.net

mroller@rollerbauer.com anita.mosner@hklaw.com

howard.kass@usairways.com jennifer.nowak@hklaw.com

benjamin.slocum@usairways.com gmurphy@crowell.com

dan.weiss@coair.com russell.bailey@alpa.org

rpommer@atlasair.com 

""""""""""""""""""""""""""""""""

JAMES K. KALEIGH

June 10, 2011