US Department of Transportation (DOT) on Friday granted American Airlines Group and Qantas Airways final approval to operate a joint venture after a prior effort was rejected in 2016.
The department last month had issued an order tentatively approving the agreement and granting antitrust immunity to the airlines covering international service.
US Transportation Secretary Elaine Chao announced the approval on Friday afternoon, noting it was the first completed review of an airline joint venture proposal during the Trump administration.
Reuters was the first to report on the planned announcement earlier on Friday.