[Anonymous]

[continentalclub]

The preliminary approval of anti-trust immunity for the Transatlantic operations of five member airlines in the oneworld alliance has been rubber-stamped.

A full release is available from the US Department of Transportation website at:

http://www.dot.gov/affairs/2010/dot14010.html

The DOT ruling applies to American Airlines, Finnair, British Airways, Iberia and Royal Jordanian, and the so-called ‘Final Order’ is summarised as:

By this order, we approve a series of agreements establishing an alliance among five members of “oneworld” – American Airlines, British Airways, Iberia, Finnair, and Royal Jordanian (collectively, the “Joint Applicants” or “applicants” or “oneworld”) and grant them antitrust immunity to implement those agreements. The agreements include plans for an integrated joint venture in which American, British Airways, and Iberia would cooperate on all of their transatlantic flights and services.

We have concluded that the joint venture, as well as the overall alliance, is, on balance, pro-competitive and that it is likely to generate substantial public benefits to the traveling and shipping public.

To ensure adequate competition and enhance the public benefits of the alliance, our approval and grant of immunity is subject to a number of conditions.

Among the conditions is a requirement that the applicants relinquish landing and takeoff rights, otherwise known as “slots,” at London’s Heathrow International Airport (“Heathrow”) so that competitors may launch competing services.

This slot remedy requires oneworld to transfer four Heathrow slot pairs to competitors, which will be sufficient to support four new daily round-trip flights between the United States and Heathrow. The implementation of the slot remedy will be governed by procedures agreed to by the applicants and the European Commission, which oversees European slot regulation. We find that these procedures are sufficient to achieve the Department’s objectives for the slot remedy.

The full text is available in .pdf format, including references, at:

http://www.regulations.gov/search/Regs/contentStreamer?objectId=0900006480b1d7d9&disposition=attachment&contentType=pdf

Given the late hour, comment in Europe and the Middle East is likely to be forthcoming from the four non-US parties in the morning; in the meantime, American have issued the following statement:

http://aa.mediaroom.com/index.php?s=43&item=2971

[Potakas]

Thanks CC, i am curious to read any statements from Sir Richard Branson..

Do you know when they will start to cooperate closer and which are the main benefits from this agreement?

Are just lower fares, codeshare agreements, timetables and miles redemption on transatlantic flights (between AA/BA)?

Regards

[Tom Otley]

Here it is….

Sir Richard Branson, President of Virgin Atlantic, commented;

“It is clear that in taking this decision, the US DOT has decided to put the interests of BA and AA before those of the flying public. As a result, millions of passengers on both sides of the Atlantic will suffer the consequences of this monster monopoly. This is a bad day for consumers.

“The lesson that big corporations wishing to create anti-competitive monopolies can draw from this debacle is to keep applying year after year until they finally find regulators and politicians willing to wave the application through – no matter what the cost is to consumers.

“I have no doubt that BA and AA will use their exemption from competition laws and their overwhelming dominance to stifle competition, raise prices and reduce choice.

“Despite often operating with one arm tied behind our back, Virgin Atlantic has always strived to give customers an alternative to lacklustre competition by a delivering a world-class product and service. We will now work even harder to provide choice to the millions of business and leisure customers that have just had their travel options radically reduced.”

[Tom Otley]

and the release from Oneworld….

GREEN LIGHT FOR TRANSATLANTIC JOINT BUSINESS

British Airways, American Airlines and Iberia have received the regulatory green light to operate a joint business on transatlantic flights. Following European Union approval on July 14, the airlines have now been granted anti-trust immunity from the US Department of Transportation.

British Airways chief executive, Willie Walsh, said: “This final approval is fantastic news for all three airlines and the oneworld alliance. We’ve waited 14 years to bring the benefits of the transatlantic joint business to our customers and level the playing field with the other two global alliances. As we have argued all along, the EU-US market is highly competitive and Heathrow’s liberalisation in 2008 opened it up even further. We are delighted that the US and EU authorities have recognised this.

“We’re pleased that the DOT and EU have worked together to ensure that there is consistency in the number of slots that the three airlines have to give up for our competitors to use on services from Heathrow to the US.”

American Airlines chief executive, Gerard Arpey, said: “This is a great day for the customers, employees and shareholders of American Airlines and our joint business partners in the oneworld alliance. We thank all of the regulators who reviewed our proposals, both here in the United States and in Europe, and all those persons and organisations that supported us in this effort. We look forward to delivering enhanced competition for customers on transatlantic flights. By working collaboratively, we will enhance our product offerings, strengthen our route networks and better position our airlines to compete in an ever-changing global aviation marketplace.”

Iberia’s executive chairman, Antonio Vazquez, said: “We’re delighted we have received approval for our joint business as it will be very positive for our employees, our shareholders and, most important of all, our customers. A new kind of collaboration between our three airlines will lead to better service levels for our customers. This means that our customers will have more destinations to choose from around the world, better scheduled travel times, better connections and more competitive fares. I am convinced that consolidation is the best and only way to succeed in the airline industry, and the approval we have received today to create a joint business is a very important step towards this consolidation process.”

The airlines plan to launch the transatlantic joint business this autumn and will co-operate commercially on flights between the EU, Switzerland and Norway and the US, Canada and Mexico. Customers will be able to travel more easily on all three airlines’ combined route network that will serve 433 destinations in 105 countries with 5,178 daily departures, providing more frequent and convenient schedule options than any of the three carriers could offer individually. By working together, the airlines will expand customer choice by supporting routes that would not be economically viable for a single airline.

Customers will also benefit from greater access to discounted fares, expanded opportunities to earn and redeem frequent flyer miles and elite tier benefits on flights and continued reciprocal airport lounge access.

Fellow oneworld members Finnair and Royal Jordanian also received antitrust immunity from the US Department of Transportation.

[JordanD]

There’s a large part me of that really hopes WW writes a “Dear Dickie, ha! ha! ha!, Yours Willie” letter.

SRB needs to grow up – sure he wants to ensure his business thrives, but his rather monotonus ramblings are sounding like that of a 3 year old stamping his feet when he’s not got what he wants. In his view, he’s always right and the world is always out to get him.

If SRB really thinks he has been got at, then I’d love to hear his views of ‘monopoly’ positions at FRA, AMS and CDG. He’s got the best ‘open access’ hub market in Europe and he still moans. Cake and eating it come to mind.

Anyway, excellent news for the 5 of OneWorld members – I look forward to seeing what this will mean in real terms for us, the public, as they can compete trans-atlantic against the other ATI groups.

[Potakas]

Pilot Unions at American Airlines, British Airways, Iberia and Finnair Issue Statement on Antitrust Immunity Approval
Unions Vow to Work Together to Protect Members’ Job Security and Career Prospects.

In response, the unions representing the pilots that fly for American Airlines, British Airways, Iberia and Finnair issued the following joint statement:

“We anticipate that trans-Atlantic regulatory approval of antitrust immunity will now lead to the implementation of the joint business agreement (JBA) between American Airlines, British Airways, Iberia, Finnair and Royal Jordanian.

“In response, the Allied Pilots Association (APA), British Airline Pilots Association (BALPA-BA Company Council), Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA) and Suomen Liikennelentajaliitto/Finnish Airline Pilots’ Association (SLL) have been working closely to develop a mutual approach to promoting the job security and career prospects of all our members in the United States and Europe.

“We acknowledge that our employers have a legitimate interest in seeking significant economic benefits from a JBA, which has also been described as a ‘virtual merger’ — including sharing revenue on specific routes, cooperating on pricing and jointly marketing their services. In turn, it is essential that our employers acknowledge our respective members’ legitimate interests in job security and in ensuring the fair distribution of any economic benefits.

“To achieve our aims, we are committed to maintaining and furthering the close cooperation between APA, BALPA-BACC, SEPLA-Iberia and SLL — all founding members of the Oneworld Cockpit Crew Coalition — while simultaneously respecting the autonomy and rights of each association.

“We have also agreed to meet regularly and establish an ongoing exchange of information relevant to the proposed JBA, including details of our collective bargaining agreements, national laws and regulations and current and proposed flying in the area covered by the JBA. Finally, and most importantly, we have agreed to develop and implement a mutual approach to protect the interests of all APA, BALPA-BACC, SEPLA-Iberia and SLL members.”

[Author]

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