It's all systems go as Qantas and American Airlines have been given the approval by the Australian Competition and Consumer Commission (ACCC) to enforce their joint business agreement on Pacific flights.

"With approval or our joint business agreement, Qantas and American Airlines can now work closely together on strategic initiatives that will benefit our customers on both continents," Rob Gurney, group executive of Qantas Airlines, was quoted on the Australian Aviation.

The ACCC authorization allows the airlines to coordinate operations on services between Australia/New Zealand and the United States and on their respective services which support these trans-Pacific 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 trans-Pacific routes," ACCC chairman Rod Sims said. Adding the JBA is even likely to result in new and improved products and services, including improved schedules and connectivity, which ultimately will benefit airline passengers.

Both airlines had also lodged applications before US Department of Transportation and the New Zealand Minister of Transport.

Its JBA aims for the two airlines to coordinate all business operations, pricing, revenue management, marketing, and reciprocal frequent flyer benefits.

American Airlines currently places its code on Qantas' flights between the US and Australia and New Zealand. It does not fly to Australia.

The two carriers also codeshare on selected flights within each other's domestic networks.

Qantas has said the alliance would give passengers more one-stop connections within the US, as well as Canada and Mexico, and cheaper flights within the US under a simplified fare structure.

It would also allow Qantas to serve a daily service between Australia and Dallas/Fort Worth - the largest hub city of American - from four times a week currently.