In a bureaucratic battle between the Department of Transportation and the Department of Justice, members of the Senate Judiciary committee have raised their voices once again. They are warning about the pending antitrust immunity for the American Airlines/British Airways/Iberia OneWorld Alliance.
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The long-sought antitrust immunity between British Airways, American Airlines and Iberia for their OneWorld alliance has hit another patch of turbulence with the E.U. as they attempt to gain the same interoperability enjoyed by competing Star Alliance and SkyTeam.
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A few reports of American Airlines (AA) and Delta Air Lines (DL) discussing possible investments in Japan Air Lines (JAL) have been making their way into the travel news cycles. Normally small investments by one airline into another might be par for the course, but in this case there are big airline alliance ramifications.
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Southwest Airlines is planning to start international operations. When? No one knows for sure, but these routes will be coming. With legacy carriers so heavily invested in international routes, the prospect of a battle with Southwest is not welcome.
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What department within the federal government should have the final say about airline antitrust immunity? Two decades after the Department of Justice (DOJ) allowed the Department of Transportation (DOT) to rule on the first airline alliance that initially has minimal antitrust implications, the stakes are higher and the oligopoly bigger.
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The battle of airline alliances within the federal bureaucracy is heating up. The Senate committee responsible for transportation and aviation issues is lining up against their opposite in the House. The Department of Transportation (DOT) has squared off against the Department of Justice (DOJ).
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An interesting dynamic has emerged in Congress with discussions about airline alliances. The House Transportation and Infrastructure Committee is staunchly against such antitrust immunity and the Senate Commerce Science & Transportation Committee is strongly in favor of these arrangements.
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When the Department of Transportation (DOT), over the objections of the Department of Justice (DOJ), approved the Continental/United Airlines antitrust immunity deal this wasn’t included. DOT needs to take another look, now.
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The Department of Justice (DOJ) has come out in opposition to the planned addition of Continental to the Star Alliance that includes United Airlines. Their objections are focused on the antitrust immunity provisions that would be applied to international routes.
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