Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

FASHION

Jean-Marc Loubier, bags and shoes.

Read more

ENCORE!

Hip-hop musician Beat Assailant on mixing the sounds of the city

Read more

  • French journalists abducted in Syria freed

    Read more

  • South Korea ferry captain defends decision to delay evacuation

    Read more

  • In pictures: Good Friday celebrated across the globe

    Read more

  • Bouteflika, the ghost president

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Ukraine: ‘One bloody incident could scupper Geneva deal’

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • Indian election: Votes for sale

    Read more

  • World honours Garcia Marquez’s magical literary legacy

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • Algeria's ailing Bouteflika clinches fourth term amid fraud claims

    Read more

  • Top Hollande adviser resigns over conflict of interest accusation

    Read more

  • West African Ebola outbreak caused by new strain of virus

    Read more

  • In Prijedor, survivors fight to keep memory alive

    Read more

  • With a strong French presence, veterans and fresh faces, Cannes aims to please

    Read more

  • Mob launches deadly attack on UN shelter for S. Sudan civilians

    Read more

  • Stagehand of God? Maradona's legendary goal inspires a play

    Read more

Business

US approves British Airways - American Airlines alliance expansion

©

Text by News Wires

Latest update : 2010-02-15

The US Department of Transportation proposed granting antitrust immunity to American Airlines and its global "oneworld" alliance partners. The Department acknowledged that immunity could harm competition on transatlantic routes.

AFP - The US Department of Transportation said Saturday it proposed granting antitrust immunity to American Airlines and its global "oneworld" alliance partners including British Airways.

The Department said the proposed alliance would enhance competition in the airline industry "by creating competition with the existing Star Alliance and the SkyTeam alliance, which already have been granted immunity."

If approval is granted, American and "oneworld" alliance partners British Airways, Iberia Airlines, Finnair and Royal Jordanian Airlines "would be able to more closely coordinate international operations in transatlantic markets," the DOT said in a statement.

The Department acknowledged that immunity could harm competition on select routes between the United States and London's Heathrow Airport, because landing and takeoff slots were limited there.

"As a condition of approval, the Department is proposing in its show-cause order that the applicants make four pairs of slots available to competitors for new US-Heathrow service," the department said.

The US Justice Department said late last year that a tie-up of British Airways and American Airlines for transatlantic flights would lead to "competitive harm" and called for restrictions on the deal.

The Justice Department's antitrust division made its recommendation to the DOT, that still has to make the final ruling on the matter.

The request for antitrust immunity "would result in competitive harm on certain transatlantic routes serving 2.5 million passengers annually," the Justice Department said in December.

It concluded that fares between six transatlantic routes "could increase up to 15 percent under the proposed agreements."

"The applicants claim substantial benefits will flow from an expanded alliance, but they have not shown that immunity is necessary to achieve these benefits," the review said.

The report recommended that the DOT "impose conditions" including removal of some slots for the affected carriers "to protect the public interest in competition."

It said any immunity might also include a "carveout" of some routes that would not be included in any cooperation.

"A joint venture is likely to harm competition if it would increase the participants' ability or incentive to r

Date created : 2010-02-14

Comments

COMMENT(S)