American Airlines and Alaska Air consider expanding international partnership, sources report

• The expansion would move beyond current codesharing to allow closer coordination on long-haul international markets, including schedule and fare alignment with American's existing joint venture partners
• Alaska Air recently acquired Hawaiian Airlines and remains focused on integrating that deal while pursuing organic growth plans
• Any deal faces regulatory hurdles requiring DOT antitrust immunity approval and potential DOJ challenge, following the 2023 court-ordered dissolution of American's Northeast Alliance with JetBlue

Summary: American Airlines and Alaska Air Consider Expanding International Partnership

Key Development:

American Airlines (AAL) and Alaska Air Group are in preliminary discussions to expand their existing partnership by potentially incorporating Alaska into American's transatlantic and transpacific joint business ventures, according to two sources familiar with the matter. The talks were reported on April 22.

Partnership Details:

The proposed expansion would allow Alaska to join American's joint ventures with international partners including British Airways, Iberia, and Finnair across the Atlantic, and Japan Airlines across the Pacific. This would deepen their current "West Coast International Alliance," which focuses on codesharing, loyalty benefits, and West Coast connectivity.

Important Clarifications:

• No merger discussions are taking place between the airlines
• Talks are early-stage and could change
• No clear timeline exists for a formal proposal
• Alaska recently acquired Hawaiian Airlines and remains focused on integrating that deal

Regulatory Challenges:

Any expansion requires approval from the U.S. Department of Transportation, which grants antitrust immunity for international joint ventures. The proposal could face significant scrutiny given recent regulatory pushback against airline partnerships involving two U.S. carriers. American's Northeast Alliance with JetBlue was struck down by a federal judge in 2023 after a Justice Department challenge, highlighting potential obstacles.

Market Context:

International joint ventures allow airlines to coordinate schedules, pricing, and capacity while sharing revenues across routes. Both airlines are already members of the oneworld alliance, providing an existing framework for cooperation.

The discussions represent a strategic effort to enhance long-haul international market coordination beyond current codesharing arrangements.