The AP is
reporting (even before Virgin America has put out a press release themselves) that the DOT has ruled that VA is, in fact, controlled by U.S. interests. Per U.S. law, foreign entities are limited to 25 percent of the voting rights of any U.S. carrier. (Heaven forbid that Singapore Airlines bought a good chunk of United and actually tried to bring it up to
SQ's level!)
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."
In what is being heralded as a "Christmas Miracle" by some air travel watchdog groups, the DOT announced new fines for airlines that keep passengers on board an aircraft for longer than 3 hours after departure from the gate. While we are not advocating that passengers should be kept on aircraft for long periods of time and deprived of basic necessities, we do worry that this arbitrary time limit will have a huge (and negative) effect on how airlines operate during periods of bad weather.
Much has been made of the DOT’s decision to proceed with minimal restrictions on the approval of the enlargement of the Star Alliance with CO and the approval of the new A++ group. It seems that the DOJ had little influence over the decision despite laying out very clear anti-competitive objections to the proposed (and now approved) action. This would indicate a clear differing of opinions in the matters of air transport amongst the new Administration.
Former Illinois congressman Ray LaHood, President Barack Obama's Department of Transportation Secretary-designate, yesterday faced the Senate Committee on Commerce, Science & Transportation. Published reports suggested the nomination hearing was closer to a lovefest than a grilling. The
New York Times wrote that LaHood "was effectively approved by acclamation." Click
here to read a few of the prepared statements and watch a video of the committee hearing. The full Senate is expected to soon make his appointment official.
