DOT Denies ATI/JV with AF and Air Tahiti

[700UW]

From another web page:
 

Almost a year ago, Air Tahitihttp://www.airliners.net/aviation-forums/general_aviation/read.main/6040382/# Nui along with Air France & Delta sought to enter into a metal neutral revenue sharing antitrust immunity JV on routes between Tahiti, Los Angeles and Paris ( Air Tahiti Nui Seeks ATI-JV With Air France, Delta (by LAXintl Apr 15 2013 in Civil Aviation) )

Today the DOT is out with its tentative show cause order denying the ATI application from the parties.

DOT says after very careful review it has not been able determine that the proposed JV would provide sufficient public benefit.
DOT in fact is concerned the proposed JV would impact the nature of the routes involved as it could impact economic incentives for the carriers leading to reduced competition.
Unlike previous ATI grants which have helped spur new routes or significantly expand consumer choice, here the applicants are only looking at partnering on existing PPT-CDG and LAX-CDG segments. In addition AF-TN already coordinate through their existing codeshares and its unlikely granting immunity would provide much additional public benefit.

In summary DOT says applicants failed to make their case as required by established statutory and policy standards for the extraordinary granting of antitrust immunity.


Order 2014-3-17
 

 

 

[WorldTraveler]

Yawn

 

[robbedagain]

well delta cannot get everything they want

 

[FrugalFlyerv2.0]

somehow i get the feeling that had this ATI application been approved, there would be a poster on here lecturing on how much dominating DL is set to do in the south pacific/french polynesia ... ... ...

 

[WorldTraveler]

sorry but there just isn't that much airline dominating to be done in Polynesia.
 
It was a French effort.  DL was along for the ride.