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US: Authorities block plans by Qantas to increase seats to America

By  |  November 21, 2016

Plans by Qantas to expand the number of seats it flies with American Airlines to the US have been knocked back on competition concerns.

The US Department of Transportation has issued a show cause order tentatively denying an application by Qantas and American Airlines to expand their alliance for services between the US and Australia/New Zealand.

The department says analysis of traffic data, passenger bookings and other evidence show the expanded alliance would create a potentially anti-competitive environment.

The deal, which would set pricing for seats sold in the US, would account for about 60% of capacity between the US and Australia.

“Consumers would have few remaining competitive options because the US-Australia/New Zealand markets are not well served by alternative routings over third countries,” the department said in a statement.

Full Content: Business Insider

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