The Department of Transportation granted broad antitrust immunity for Continental Airlines to join members of the Star alliance group of carriers today, while accepting some Justice Department recommendations that limited the deal.
DOT sided with DOJ and against Continental and the nine members of the Star alliance in the order by adding more “carve-out” routes where immunity is inapplicable. The partnership includes United Airlines, Lufthansa and Air Canada.
“We appreciate that our opinions were considered,” said DOJ spokesperson Gina Talamona.
The Justice Department’s Antitrust Division under Christine Varney strongly opposed antitrust immunity that would allow the carriers to share scheduling, pricing and other information. The DOJ said the partnership with Continental — which DOT tenatively approved in April — could harm consumers. The airlines said this week that the DOJ’s concerns were unjustified.
“After careful consideration of DOJ’s and other parties’ arguments, we confirm our tentative decision that this application is not anti-competitive,” the DOT order said. “While DOJ has suggested that less anticompetitive measures are available and that immunity does not benefit consumers, we are not persuaded to alter our fundamental initial assessment of the Joint Applicants’ request.”
Transportation Secretary Ray LaHood said the new carieer partnership will help save airline jobs and have benefits for consumers, according to The Associated Press.
