Continental Airlines and its Star Alliance partners-to-be this week countered Department of Justice criticism of their antitrust immunity application and requested prompt finalization of April's tentative approval.
The decision now rests with the U.S. Department of Transportation, which the joint applicants in a filing dated July 6 implored to "reject the conditions on immunity DOJ proposed." A DOT spokesperson today said the "record is complete," and DOT intends to "issue a final decision as soon as possible."
Continental last year laid out its plan to leave SkyTeam and tightly align with nine Star carriers through the immunity request, which was fortified by a proposed joint venture with Air Canada, Lufthansa and United
(BTNonline, June 30, 2008). Continental said it plans to withdraw from SkyTeam on Oct. 25 to become a tightly aligned, antitrust-immune Star Alliance member.
After DOT's tentative approval for antitrust immunity in April, the Justice Department sought to weigh in on the matter, delaying a May 31 deadline for DOT's final order. In comments published late last month, DOJ blasted the immunity request and asked DOT to amend its tentative approval
(BTNonline, June 29).
In its comments DOJ noted that the Transportation Department "should deny the broad requested immunity and instead grant a more limited immunity," claiming the tentative approval as it stands would reduce competition, raise fares, seep into domestic markets and offer little in the way of consumer benefits. DOJ proposed carving out some transatlantic markets from antitrust immunity, while asking DOT to reject unbridled cooperation between Continental and United on Latin American and Transpacific routes.