ACCC gives Qantas and AA green light

The competition watchdog has given Qantas and American Airlines the go-ahead to continue their alliance for a further five years.

The ACCC gave Qantas and AA the green light. (AAP) Source: AAP

The competition watchdog has given Qantas the all-clear to continue its trans-Pacific alliance with American Airlines for another five years.

The Australian Competition and Consumer Commission says the airlines can continue to co-operate on things like sales, freight, pricing and frequent flyer programs.

ACCC Commissioner Roger Featherston said the deal will give passengers new flight frequencies and destinations, more online connections, better scheduling, greater loyalty program benefits, and improved lounge access.

"The alliance is also likely to promote competition between other airlines that provide services on trans-Pacific routes," he said.

American Airlines, the world's largest airline, resumed direct daily flights between Sydney and Los Angeles in December after a gap of nearly two decades, as part of a broadening alliance.

Qantas also began a service between Sydney and San Francisco.