Qantas Revives US Market, Re-Launches San Francisco Route With American Airlines
Qantas Airways Ltd will revive its U.S. market via its alliance with American Airlines Group Inc. The two global airlines will start serving the Los Angeles-Sydney route in December.
Set to begin on December 17, the daily non-stop flights is forecast to improve by 9 percent Australia and the mainland United States’ air capacity, a report by the Australian Financial Review states. The direct flight will take 14 hours on a Qantas Boeing 747.
It was in 2011 when Qantas last flew the Sydney-San Francisco route. It abandoned the route to focus flying to Dallas. But over the years, it saw that San Francisco had become Australia’s seventh largest corporate destination. The surge of activity in Silicon Valley ultimately sealed Qantas’ decision to resume flights to San Francisco.
The number of Americans flying to Australia, according to Qantas CEO Alan Joyce, could jump in the succeeding months, owing to the lower Australian. “We think that has the potential of increasing the demand dramatically,” Joyce said. Qantas recorded a $206 million net profit for the first 6 months of the 2015 financial year.
Moreover, the free trade agreement between the two countries will enable American and Qantas to become the biggest players on the Pacific route, Joyce added.
The new arrangements have yet to pass regulatory approval.
American Airlines has also embarked on a plan to expand its trans-Pacific flight offerings to better compete with bigger competition. Just this May, it started its daily nonstop service to the Dallas-Fort Worth-Beijing route.
Mashable reports the new route starting in December will be American Airlines’ lone nonstop service between the U.S. and Australia.
“Strengthening those ties has provided us with a solid foundation to introduce American-operated flights into the Australian region,” Doug Parker, chairman and CEO of American, said in a statement.