Facing the spectre of labour unrests and leadership shakeup from roll-over crises last week, national carrier Qantas Airways won a much-needed reprieve on Monday as Australia's competition watchdog provisionally approved the company's proposed alliance with American Airlines.

In its decision, the Australian Competition and Consumer Commission (ACCC) appeared convinced that the partnership forged between the American and Australian carriers will bring in 'anti-competitive effects' to the airline industry in general as both companies do not service overlapping routes between Australia and the United States.

In fact, the ACCC noted on its report that American Airlines has been out of action in the trans-Pacific routes for close to two decades now and according to BusinessDay, the airline last flew such long-haul flights between the continents in 1992.

In applying for the approval of their service collaboration, both Qantas and American Airlines argued in their petitions that working together would lead to new trans-Pacific routes and connections, with the two companies embarking on a code-sharing network.

The ACCC approval would see the realization of new service flights between Sydney and Los Angeles, Melbourne and Los Angeles and a Dallas-Honolulu service route, all of which Qantas and American Airways jointly said would benefit travellers between the two countries.

Also, Qantas has been long-campaigning for the establishment of cooperation with other global carriers, which the company said will give it the edge on competing in the international arena, and with the ACCC nod on its new partnership with the US-based American Airlines, the company said that is making sufficient headway so far on the front.

Buoyed by the affirmative view handed down by the competition regulator, Qantas said that it will pursue in-placed plans to hook-up with Malaysia Airlines and AirAsia, currently Asia's leading budget carrier.

ACCC's decision was released as Qantas is presently wracked by employment issues highlighted by the company's move last week of letting go some 1000 pilots, flight crews and engineers.

Qantas is also set to reveal its yearly profit report on Aug. 24 this week, the result of which, should there be profit and sale slides, could further cast a cloud of doubt on the fate of company chief executive Alan Joyce and chairman Leigh Clifford, who reportedly will face the prospect of a no-confidence vote on Qantas' annual shareholders' meet in October.