United/ bmi alliance receives antitrust immunity
The US Department of Transportation (DOT) has granted antitrust immunity to a proposed transatlantic alliance between United Air Lines and bmi.
It said it believed that the planned tie-up would “increase travel options and competition” on transatlantic routes. However the approval is subject to the US and the UK concluding an Open Skies agreement within the next six months.
US Transportation Secretary Norman Y Mineta said: “Making the benefits of Open Skies available to U.S. and UK consumers is a DOT priority. If we can replace the restrictive US-UK aviation agreement with Open Skies, this alliance will provide air travellers new, competitive options for service to the United Kingdom and beyond.”
The decision was welcomed by United Airlines. However the airline said the DOT should grant the immunity immediately. Michael Whitaker, United’s vice president of international and regulatory affairs said: “Granting the immunity now would allow consumers to immediately enjoy the benefits of the alliance and inject significant and immediate competition to British Airways and American Airlines, the two dominant carriers in the US-UK market. It would also pressure British Airways to come back to the open skies bargaining table to obtain approval for its troubled alliance with American Airlines.”
The UK government was forced to pull out of Open Skies talks with the US after British Airways and American Airlines withdrew their own application for antitrust immunity, saying that the slot concessions being demanded were unacceptable.
Commenting on the United/ bmi decision, Delta Air Lines chairman Leo Mullin said: “We hope this order will provide an incentive for the British government to meet with the US in the near future to begin negotiating a liberalised bilateral agreement. That agreement must include guarantees to ensure Delta and other carriers will have the ability to serve London Heathrow Airport including necessary slots and airport facilities.”
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