BA responds to US Justice concerns over AA deal
12.01.10
British Airways responded to objections from the US Department of Justice over granting the it and American Airlines antitrust immunity (ATI) on transatlantic flights yesterday. In December the Justice Department said the two airlines, which are part of the oneworld alliance, need to make concessions including giving up slots at Heathrow if they are to receive ATI status on their third attempt.
The Justice Department also said granting ATI status could result in ‘competitive harm’ on six transatlantic routes if allowed in its current form. Granting ATI status would allow the two airlines to work more closely on scheduling, fares and share revenue on certain routes without fear of monopoly prosecution. The US Department of Transportation has final say on the application.
A spokesman for BA said, ‘It is important to note that the issues raised by the Justice Department are virtually identical to the Justice Department's filing in the Continental-United Star alliance case, which the Department of Transportation ultimately rejected. We believe the Department of Transportation should reject these arguments to the oneworld application now as they did with the Star team alliance.’
He added that the quickest way to enhance competition would be to grant oneworld alliance ATI status and ensure a level playing field with both the Star and SkyTeam alliances, who already have immunity.
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