Air cargo/global logistics: Carrier antitrust ruling welcomed by shippers
Patrick Burnson -- Executive Editor -- Logistics Management, 7/10/2009
WASHNGTON—The U.S. Department of Transportation (DOT) granted final approval for antitrust immunity to Continental Airlines for its participation in the Star Alliance.
At the same time, the agency approved a new joint venture among four of the alliance’s members. Antitrust immunity allows airlines to coordinate their services and act as a single carrier for international air services covered by the immunity.
“I believe that the Department’s decision will benefit consumers, enhance competition, and preserve jobs in the airline industry,” said U.S. Transportation Secretary Ray LaHood.
Brandon Fried, executive director, Airforwarders Association, told LM that the move was welcomed by shippers.
“U.S. carriers need all the help they can get at this point,” he said. “The antitrust immunity will permit some of marginal players to build up their balance sheets, and give shippers more sustainable levels of service.”
In the final order issued today, the Department granted immunity to new alliance member Continental and allowed Air Canada, Deutsche Lufthansa Airlines, United Air Lines, and Continental Airlines to place a portion of their international air services within a new joint venture, to be called Atlantic Plus-Plus.
Under the venture, the carriers will jointly arrange capacity, sales and marketing, as well as share revenues in international markets.
The Department concluded that granting antitrust immunity to Continental to join the alliance and approving the joint venture was 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.
The United States has open-skies aviation agreements with all of the home countries of the carriers involved in today’s decision. Open-skies agreements provide for international market access to all home-country airlines.
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