2nd UPDATE:US AG: DOT To Consider DOJ Input On Air Alliances
17 Junio 2009 - 4:03PM
Noticias Dow Jones
U.S. Attorney General Eric Holder told a Senate panel Wednesday
that the Justice Department's antitrust regulators have reached out
to the Department of Transportation to offer input on pending
applications by airlines seeking antitrust immunity for new
alliances.
"I think we will come to a joint resolution on how this issue
should be resolved," Holder said.
Sen. Herb Kohl, D-Wis., expressed concern that the
Transportation Department would act unilaterally to grant immunity
to new airline alliances without getting input from the Justice
Department about the competitive effects of such agreements.
Continental Airlines (CAL) and United Airlines (UAUA) have an
immunity application for their proposed alliance pending at the
Transportation Department, as do American Airlines (AMR) and
British Airways (BAY).
Critics say the alliances, in which airlines cooperate on
services and fares in international markets, harm the competitive
marketplace and are bad for consumers. Airlines say the agreements
improve service and provide cost-saving efficiencies.
Holder told Kohl that the Transportation Department has pledged
to work with DOJ in deciding whether to approve future
alliances.
"That's good to hear," Kohl responded.
Under questioning from Sen. John Cornyn, R-Texas, Holder
confirmed that the Justice Department asked its Transportation
counterpart for time to weigh in on Continental's bid to join
United's Star Alliance.
The Transportation Department gave preliminary approval to the
alliance in April, and Cornyn expressed concern about the delay in
the airlines obtaining a final decision.
Holder said his department's involvement wouldn't produce a long
delay and that a decision on the alliance could come in a few
weeks.
Continental spokeswoman Mary Clark said the Transportation
Department traditionally consults with Justice before making final
decisions on air alliances.
"We are pleased to hear the approval process is apparently
coming to a close, and remain confident the DOT will approve the
application so we can begin bringing its benefits to consumers,"
Clark said.
A United spokesman said his company also was confident that
regulators would find that the alliance is good for customers and
employees.
The U.S. House passed a bill last month aimed at curtailing
airline alliances. The legislation would sunset all antitrust
immunities for air alliances in three years and would require a
federal study of how the air alliances affect competition.
The Senate hasn't taken any action on the House bill.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com