American Airlines and Alaska Airlines are considering further deepening their existing partnership and are exploring revenue-sharing deals and other strategic agreements, Bloomberg reported on Wednesday, citing those familiar with the matter.
The two carriers initially discussed a merger, but talks did not develop.
The discussions since have included adding Alaska to American’s joint ventures over the Atlantic with British Airways and over the Pacific with Japan Airlines. The two airlines would make schedule and fare arrangements on select routes, and share revenue.
A deal would be subject to approval by the U.S. Department of Transportation.
The two carriers’ existing partnership allows reciprocal benefits, including extra legroom seats, lounge access, upgrades for elite passengers, and more.
American Airlines has a noticeable gap in its network in the Pacific Northwest, where Alaska Airlines is the strongest. Further deepening their relations would address the gap in service for American, while giving Alaska a stronger presence across the U.S. and overseas.
Such a partnership will also allow American to further drive credit card revenue.
American Airlines attempted a partnership with JetBlue Airways during the Biden administration, which was blocked on antitrust grounds. The carrier’s AAdvantage and co-brand credit card sign-ups increased during the initial phase of the JetBlue deal, and can likely expect similar results from deepened relations with Alaska.
United Airlines Chief Executive Officer Scott Kirby previously floated the idea of a merger with American, but both American and President Donald Trump have since stated their disinterest.
Featured image by the author.
