The three major global airline alliances aren't for everyone, including several airlines represented at this week's Phoenix Aviation Symposium. Representatives from those carriers pointed to the costs associated with alliance participation, tech challenges and other concerns.
In examining a oneworld alliance antitrust immunity application highlighted by a proposed American Airlines/British Airways/Iberia joint venture, the U.S. Department of Transportation on Dec. 22 "established a supplemental comment period--through January 11" for interested parties "to respond to late-filed pleadings." One such late filing, submitted by the U.S. Department of Justice, argued that the proposed agreements "would result in competitive harm on certain transatlantic routes serving 2.5 million passengers annually" and increase fares "up to 15 percent."
A U.S. House of Representatives subcommittee again postponed a hearing on airline alliance competition originally rescheduled for this coming Wednesday, with no new date set. Time is running short for Congress to weigh in on this topic before the U.S. Department of Transportation issues a decision on the American Airlines-British Airways-Iberia immunity request, expected next month.
While their major transatlantic competitors have formed joint ventures and antitrust immunized alliances, and while their relatively comfortable position at London Heathrow has been subjected to new competition brought on by Open Skies, American Airlines and British Airways have continued their arm's length partnership.
