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."
The good old days of carte blanche acceptance of Alliances may be coming to an end.
The oneworld proposal seems stuck in no man's land. It was supposed to be given the green light (with changes of course) last week, but so far nada.
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.
