American airlines and Qantas have extended their joint business by opening new direct flights between Australia and the United States. American airlines will commence with flights from Los Angeles to Sydney, flying daily from the 17th of December, while Qantas will return to San Francisco. This agreement sees five of Qantas’ Boeing 747 replaces by American Airlines’ flagship Boeing 777-300.
This replacement of Qantas’ jumbo jets grants them the planes required to restart flights between Sydney and San Francisco. These direct flights, also starting in December, will be flown six days a week allowing a greatly increased influx of tourists for both countries. An important fact when considering that American tourists account for the lion’s share of Australian tourism income each year. This positive aspect of the deal is incentive enough for the parties involved, but this agreement will likely bring with it aggressive new strategies from competitors such as Virgin Australia.
The return of American Airlines to Australia, a route which they have not flown since 1990, represents a 9 per cent boost in aviation capacity.
…Bringing more tourists
This agreement, which will help boost the image of Australia as a vacation and business destination is in line with Australia’s Tourism 2020 ambition. The goal is to nurture the American market, from its current 2.6 billion dollars in annual earnings, into a 5 billion dollar industry through increased aviation capacity and American Airlines’ significant marketing resources.