American Air:DOJ Alliance Stance Could 'Jeopardize' Open Skies
July 06 2009 - 6:03PM
Dow Jones News
American Airlines Inc. warned Monday that efforts by the U.S.
Justice Department to sway policy on industry alliances could
threaten a landmark liberalization pact with the European
Union.
The carrier fired the first industry salvo following the
department's recent negative signals about a proposed pact
involving Continental Airlines Inc. (CAL) and nine members of the
Star airline alliance.
DOJ's comments on the Star request - which have already received
tentative approval from the transportation department - threaten to
complicate the separate application for antitrust immunity by
members of the rival Oneworld alliance, led by British Airways PLC
(BAY.LN) and American, a unit of AMR Corp. (AMR).
DOT has final say on the antitrust applications, but American
said it had "serious concerns" about DOJ's "request" that different
standards be applied to the applications now under review.
American, in its response to DOJ, said that failure to apply
"consistent" standards could hit the existing open skies pact with
the EU "in jeopardy," as well as a planned extension.
"While DOJ's comments appear to claim that all alliances are
equal in their ability to compete for transatlantic traffic, the
reality is that some are now more equal than others," said the
airline in its filing.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com