UPDATE:British Air Targets US Antitrust Approval By Sep, Oct
05 Marzo 2009 - 11:55AM
Noticias Dow Jones
British Airways PLC (BAIRY) Thursday said it was close to
finalizing information requested by the U.S. allowing the airline
to expand a key transatlantic alliance.
BA and its main partner, AMR Corp.'s (AMR) American Airlines,
want to secure antitrust immunity alongside other members of the
Oneworld alliance to coordinate their global operations.
The U.K. carrier said it hoped to secure approval from the U.S.
by September or October, though observers believe the timetable
could be challenged by opposition from U.S. lawmakers and some
rival carriers.
An influential U.S. lawmaking committee was considering Thursday
the introduction of language to a bill that could derail the
existing system of alliances that dominate the global airline
industry.
BA and American have twice tried and failed to secure antitrust
immunity, or ATI, after regulators suggested conditions regarded by
the airlines as too onerous.
Their latest submission, made last year, would bring their
alliance closer to the rival SkyTeam and Star groupings, many of
whose members are allowed to coordinate marketing and schedules
after securing ATI approval.
The U.S. Department of Transportation asked the Oneworld
carriers for more information on Dec. 19 and, as of Feb. 25, hadn't
received it, according to a DOT filing.
BA said Thursday that "information gathering is close to an
end," adding that it expects a decision from the Transportation
Department by September or October.
The U.K. airline said it would target benefits from the planned
cooperation by 2010 if it wins approval.
American said Wednesday that it hadn't submitted the additional
information to the DOT, but was targeting approval "in the second
half of the year."
When the DOT rules the application is "substantially complete,"
it has six months to make a ruling. However, rival airlines could
challenge the decision and delay the process, said industry
observers in Washington, D.C.
The House transportation committee is also considering language
for a bill that would call for a review of the impact of global
alliances on competition and even cancel existing ATI approvals
after three years.
The U.S. Air Transport Association warned in a letter to the
committee chairman Wednesday that such terminations would be
"tremendously unfair" and cost up to 15,000 airline jobs.
Given that the joint applicants are requesting global immunity,
the DOT required further information on worldwide plans and
operations, including the alliance's plans and operations in the
Pacific, Australian and Latin American markets.
In addition, the DOT called for additional detail about hub
rationalization and code-sharing, as well as how a joint business
agreement would affect corporate and travel agency
relationships.
-By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299;
kaveri.niththyananthan@dowjones.com
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
dougcameron@dowjones.com