American Airlines and Qantas have filed an application with the US Department of Transportation to seek approval to form a joint business.
The airlines say the joint business will improve service, stimulate demand and provide more than $300 million (about £215 million) a year in consumer benefits through the expansion of codeshares between the carriers and a wider range of fare classes across both networks.
American also says going into business together would allow both airlines to launce additional routes between the US and Australia and New Zealand, including new flights to city pairs not currently served by either carrier.
The airlines claim they will have to reduce their codeshare agreements if the application is not approved. Qantas says it will have to reduce or cancel its service between Sydney and Dallas/Fort Worth, while American may reduce its flights from Los Angeles to Sydney and Auckland.
View the airlines’ application here.