Australia's competition regulator has approved a transpacific alliance between Qantas Airways and American Airlanes, the regulators said on Thursday.

The Australian Competition and Consumer Commission says the alliance will not adversely affect competition given the fact that the two airlines do not have any overlapping direct services between the U.S. and Australian and New Zealand. Under the proposed alliance the two carriers will coordinate operations on services between Australia/New Zealand and the United States on their respective services on their transpacific routes.

"The ACCC does not consider that the JBA will have any anti-competitive effects, as Qantas and American Airlines do not currently provide any overlapping direct services on the transpacific routes," said Rod Sims, Chairman of the Australian Competition and Consumer Commission.

The joint venture would be a benefit to passengers, according to the ACCC.