Source: Reuters Author: John Crawley 06/29/2009
Subject Concerned: Government Airlines
The U.S. Justice Department opposes broad antitrust immunity for Continental Airlines Inc to join UAL Corp's United Airlines and other members of the Star Alliance, documents showed.
In a filing late on Jun. 26 with the U.S. Transportation Department, antitrust enforcers said approval is likely to harm competition on some international routes, including flights between U.S. cities and Canada and China.
The proposed agreements also could harm domestic competition and raise fares on some routes, Justice Department lawyers wrote in public comments.
The DOJ also said Continental, United and the other carriers have offered "little in the way" of consumer benefits arising from the alliance.
Antitrust immunity would permit carriers to share pricing, scheduling and other information within the Star Alliance.
The airline group includes US Airways Group Inc, Deutsche Lufthansa AG, Air Canada, Air China Ltd, Thai Airways International PCL and several other carriers.
The Transportation Department earlier this year granted provisional approval to the United and Continental application, pending review of public comments.
Transportation officials will make the determination on final approval.