By Rajesh Kumar Singh
CHICAGO, April 22 (Reuters) – American Airlines is in preliminary discussions with Alaska Air Group to broaden their existing partnership, potentially by bringing Alaska into American’s transatlantic and transpacific joint business arrangements, two people familiar with the matter said.
The talks, which are early-stage and could still change, center on allowing Alaska to join American’s joint ventures with global partners such as British Airways, Spanish carrier Iberia and Finnish airline Finnair across the Atlantic, and Japan Airlines across the Pacific, the sources said.
Airlines favor such joint ventures because they allow partners to coordinate schedules and fares and share revenue on international routes. These so‑called “metal‑neutral” arrangements mean it does not matter which airline operates a flight, enabling carriers to expand networks, improve connectivity and better compete on long‑haul routes without adding aircraft.
There are no discussions about a merger between the two airlines, the sources said.
American and Alaska declined to comment.
EXPANDING AN EXISTING TIE-UP
American and Alaska already have a partnership built around codesharing, reciprocal loyalty benefits and West Coast connectivity into international routes, under what they have described as a “West Coast International Alliance.”
Alaska, which recently acquired Hawaiian Airlines, is focused on integrating that deal, with Chief Executive Ben Minicucci saying on Tuesday he remained “super excited about our organic growth plan.”
The current talks would deepen that relationship by moving beyond codesharing into closer coordination on long-haul international markets, the sources said.
There is no clear timeline for when the talks could result in a formal proposal, the sources said, noting that such arrangements are complex and require alignment among airline partners and regulators.
Alaska is a member of the oneworld alliance, a global partnership of leading airlines, which already links it with American and several of its international partners.
REGULATORY HURDLES AHEAD
Any such expansion would require approval from the U.S. Department of Transportation, which grants antitrust immunity for international joint ventures, allowing airlines to coordinate pricing and capacity, the sources said.
The plan could still face scrutiny given recent regulatory pushback against airline partnerships, particularly where cooperation involves two U.S. carriers. American’s now-defunct Northeast Alliance with JetBlue Airways offers a recent example.
That partnership, focused on New York and Boston, would have allowed the airlines to coordinate flights and share revenue but was struck down by a federal judge in 2023 after a challenge by the U.S. Department of Justice.
That case underscores that DOT approval alone may not be sufficient if the Justice Department decides to challenge an arrangement. The structure under discussion with Alaska would differ in key ways.
International joint ventures have been used for years and typically involve deeper coordination, including pricing and full revenue sharing across routes.
(Reporting by Rajesh Kumar Singh; Editing by Joe Brock and Kim Coghill)
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