US gives nod to Continental’s Star Alliance plans
Continental Airlines has been given a tentative nod from the US Department of Transportation for its plans to join the Star Alliance.
The DOT said it would grant Continental antitrust immunity for its participation in the alliance, which also includes United Airlines and Lufthansa.
Continental also received approval for a trans-Atlantic alliance with Air Canada, Lufthansa and United.
“Antitrust immunity allows airlines to coordinate their services and act as a single carrier for international air services covered by the immunity,” the DOT said in a statement.
The DOT said the alliances would increase service in international markets, give consumers more options and shorter trip times, and reduce fares.
The public has 21 days to file objections to the plans.
Under conditions of the approval, the airlines must implement the alliance within 18 months and provide annual reports for regulators.
The move was welcomed by British Airways, which is currently seeking a similar joint venture with its Oneworld partners American Airlines and Iberia.
“We welcome the US Department of Transportation’s initial view that by granting anti trust immunity to Continental and approving the Star Alliance joint venture, it would bring benefits to consumers,†said a spokesman.
“Our plans for a transatlantic joint business with American Airlines and Iberia would bring similar benefits to consumers and we hope that the US DOT will grant us anti trust immunity so that we can operate this joint business.
“It would also enable oneworld to compete on the same competitive basis as the other major global alliances, Star and Skyteam.â€
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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