Wednesday April 8, 2009 The US Dept. of Transportation yesterday approved Continental Airlines' entry into Star Alliance, granting tentative antitrust immunity to the carrier and certain Star partners and to CO's proposed transatlantic joint venture with Air Canada, Lufthansa and United Airlines.
The alliance and the four carriers seeking the JV, to be called "Atlantic Plus-Plus," petitioned for antitrust immunity last summer (ATWOnline, July 24, 2008). ATI enables airlines to coordinate their operation and act as a single carrier for international air services, sharing capacity, sales and marketing and revenue.
In a statement released yesterday, DOT said CO's entrance into Star and the quartet's JV "would be in the public interest because it would support increased levels of service in international markets served by the carriers, give consumers more travel options and shorter travel times, and reduce fares." UA and LH have held transatlantic ATI since 1996.
Atlantic Plus-Plus must be implemented within 18 months as a condition of immunity, DOT said, adding that airlines would remain subject to antitrust regulations with respect to their domestic services.
"Continental's entrance into Star Alliance will provide substantial benefits for consumers worldwide while preserving domestic competition and jobs." CO Chairman and CEO Larry Kellner said. "In addition, a timely final approval will allow Continental to provide a seamless transition for its customers from the SkyTeam alliance to Star Alliance this fall."
ATI granted to the alliance covers the aforementioned four carriers as well as Austrian Airlines, bmi, LOT Polish Airlines, SAS Group, Swiss International Air Lines and TAP Portugal.
DOT said objecting parties will have three weeks to file their statements regarding yesterday's ruling. Oneworld members American Airlines, British Airways, Finnair, Iberia and Royal Jordanian expect DOT to issue its decision on their ATI application in the second half of this year (ATWOnline, March 17).
by Brian Straus
