EC Reviewing Star, Oneworld Antitrust Immunity Applications

The European Commission today said it has opened two competitive reviews of Star and Oneworld airline alliance members separately seeking antitrust immunity on transatlantic routes.

Several carriers from each alliance are in the midst of seeking immunity to "jointly manage schedules, capacity, pricing and revenue management on transatlantic routes, as well as share revenues and sell tickets on these routes without preference between these carriers," EC competition authorities noted. EC said that level of cooperation "appears far more extensive than the general cooperation" among alliance members.

Through the review, the EC is "assessing whether these joint activities may lead to restrictions of competition on certain transatlantic routes. In its analysis, the commission will take into consideration any demonstrated consumer benefits which may arise from the parties' cooperation."

The EC described the reviews as a "procedural step," noting that the proceedings do "not imply that the commission has proof of an infringement," the EC said in a memo. "It only signifies that the commission is dealing with the cases as a matter of priority."

The investigation includes "both existing and planned cooperation" among Star Alliance carriers Air Canada, Lufthansa, United Airlines and incoming alliance member Continental Airlines. The U.S. Department of Transportation this month gave those carriers tentative approval to launch an antitrust-immune joint venture, expected to gain final approval by the end of May.

The EC's second review involves a similar arrangement among Oneworld carriers American Airlines, British Airways and Iberia. Those carriers expect approval from DOT in the second half of 2009.