American Airlines and Australian flag carrier Qantas are hoping that a revised application submitted to the US Department of Transportation (DOT) Feb. 26 to form an antitrust-immunized joint venture (JV) will be approved.

A previous application by the oneworld carriers to gain antitrust immunity was tentatively rejected in November 2016 by DOT, which cited concerns about harm to competition in the US-Australasia market.

Dallas/Fort Worth-based American has been reworking the application since and expressed confidence that the new proposal will get the green light.

American says the JV has the potential to generate up to $221 million in value from expanding codesharing, as well as up to $89 million from a wider range of available fare classes between each airline’s networks. A potential for up to 180,000 new trips between the US, Australia and New Zealand could be generated.

The two carriers already codeshare. American and Qantas began operating daily service between LAX and Sydney in December 2015. Winter seasonal service between LAX and Auckland began in June 2016. As a joint business, the two carriers hope to launch new flights to city pairs not served by either carrier.

If the JV is turned down, however, American and Qantas said they would have “no choice but to further reduce codesharing on their networks,” including Qantas curtailing its Airbus A380 service between Sydney and Dallas/Fort Worth, or American reducing its LAX flights to Sydney and Auckland.

“These routes rely on codeshare support from each airline’s feeder network via their respective hub cities to be economically viable,” the airlines said in a statement.

Mark Nensel