SkyTeam Adds Members, Eyes Expanded Antitrust Immunity

The SkyTeam alliance today officially welcomed Continental, KLM and Northwest airlines, providing the global partnership a significant boost in its competition with the Oneworld and Star alliances. Aside from leveraging the combined network--more than 14,000 daily flights to 658 destinations--SkyTeam seeks to build synergies in the areas of aircraft and fuel purchasing, co-located airport facilities and other sales and distribution integration that would stem from expanded antitrust immunity.

"SkyTeam understands the value of antitrust immunity," said Paul Matsen, Delta chief marketing officer, speaking with reporters following a press conference of all SkyTeam airline CEOs today in New York. "It may be possible to have antitrust immunity between U.S. carriers for international flying."

Matsen said "there is no precedent" for antitrust immunity between Continental, Delta and Northwest for domestic operations but that such integration on international routes would improve SkyTeam's ability to serve multinational corporate clients. He did not provide a timeframe for when the three U.S. alliance participants might apply for such immunity. Bilateral antitrust immunity within the alliance currently includes links between Northwest and KLM and between Delta and existing SkyTeam members Air France, Alitalia, CSA Czech and Korean Airlines.

Matsen also said to expect "a steady flow of codeshare filings in all combinations," with new announcements coming as early as today.

SkyTeam executives said that adding Continental, KLM and Northwest marked "the single largest airline integration in aviation history" and claimed member carriers combine to hold the first or second position "in every major market in the world."

"We can offer multinational companies a single contract or a single system to handle their travel needs," said Northwest CEO Richard Anderson.