US airlines ask DOT to dismiss AA/BA antitrust immunity

Airline Industry Information, Feb 5, 2002

AIRLINE INDUSTRY INFORMATION-(C)1997-2002 M2 COMMUNICATIONS LTD

Delta Air Lines, Northwest Airlines and Continental Airlines have filed a joint motion asking the US Department of Transportation (DOT) to dismiss the antitrust immunity application filed by American Airlines (AA) and British Airways (BA).

The DOT's consideration of the antitrust immunity for the proposed alliance is dependent upon negotiation of an 'open skies' agreement between the US and the UK. However the airlines have requested the dismissal of the application as they claim that the immediate prospects for an open skies agreement with the UK no longer exist.

The DOT proposed granting antitrust immunity to AA and BA subject to the negotiation of an open skies agreement and a condition that the two airlines divest a number of takeoff and landing slots at London-Heathrow Airport. AA and BA issued a joint statement which said that the DOT conditions were too great and did not make sense for either company. Consequently, the open skies talks were promptly cancelled.

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