US Airways filed objection to DL, NW, & CO alliance with DOT

[chipmunn]

DOT Extends Review of UA-US Code Share

WASHINGTON (Aviation Daily) - DOT extended separate, informal reviews of the United/US Airways and Continental/Delta/Northwest agreements 30 days, to Oct. 23 and Oct. 22, respectively.

DOT is considering comments on the proposed reciprocal code-share and frequent flyer arrangements, but hasn't established a formal docket procedure.

It wants more time to review information and consult with the Justice Dept. DOT noted that, in the case of UA/US, this is the last time it may extend the waiting period for the carriers to implement their proposed frequent-flyer agreement; DOT must either deny the arrangement or impose conditions, or the carriers may just proceed as proposed.

 

[chipmunn]

US Airways filed objection to Delta, Northwest, & Continental alliance with DOT
ARLINGTON (US Airways Update) – US Airways has asked federal authorities to conduct a forma review of the proposed alliance of Delta, Northwest and Continental airlines because of its complexity and anti-competitive nature.
In a filing with the Department of Transportation, the company said the three-way alliance “has been born from a public desire by Delta to snuff out its primary competition on the East Coast, and it is seeking to do so by combining the networks of the nations third, fourth, and fifth largest air carriersâ€.
The filing said Delta CEO Leo Mullin has made public statements that “Delta will do everything in its power to attack US Airways†and that he pledged to use an “armada†of products and services against any US Airways-United.
US Airways said the triple alliance is “unparalleled in its breadthâ€. By combining the domestic route structures of the three airlines, the alliance would operate more than 35 percent of the major U.S. carriers’ domestic traffic, compared to 24.4 percent for the alliance between US Airways and United.
Whereas the existing Northwest-Continental agreement and the pending US Airways-United alliance involve airlines with minimum overlap and complementary networks, the inclusions of Delta into the Northwest-Continental arrangement will create unprecedented market concentration and dominance, the company said in the filing.
“The question thus, before the Department is whether it should allow Delta to implement an anti-competitive agreement designed to increase market concentration and limit consumer access so that Delta can succeed in its efforts to eliminate US Airways and fortify its control of he eastern United States. US Airways submits that the answer is clearly noâ€, the filing stated.
The DOT also is currently reviewing the US Airways-United alliance proposal.