Continental, United Airlines and Eight Star Alliance Members Seek Antitrust Immunity

Leading member airlines of Star Alliance approached the U.S. Department of transportation (DOT) to sanction Continental’s inclusion in the list of nine carrier airlines that have antitrust immunity. This sanction, once given will allow all immunized airlines including Continental to make professional alliances and work out better priced flight schedules and costs. DOT has also been approached by Continental, United, Lufthansa and Air Canada for sanction to develop a highly effective and broad-based trans-Atlantic joint venture and network. Customers, through this venture will benefit by way of better service, convenient schedules and varied cost options. This venture, once established could motivate more such operations across various parts of the world.

At present, over 20 antitrust immunity sanctions have been awarded by DOT that include one for trans-Atlantic zones for Sky Team airlines. These include carriers Air France, Alitalia, CSA Czech Airlines, Delta, KLM Royal Dutch Airlines and Northwest Airlines. Moreover, the same DOT sanction has permitted Delta/Air France and Northwest/KLM to integrate.

Continental Airlines recently expressed its intentions of joining United in Star Alliance. Since the domestic airline market in the US does not stipulate antitrust immunity, both Continental and United airlines could implement strategies like broad code-sharing, frequent flier awards, premium customer facilities etc.  Customers of both airlines can expect to reap the rewards of such a joint venture; more efficient reservation/checking in procedures, flight connectivity and baggage movement. Members of mileage programs can enjoy benefits across both airlines.