American Airlines and British Airways likely will get approval for their plan jointly to market, schedule and price flights, despite antitrust concerns, Bloomberg reported. The development was a sign the Justice and Transportation Departments have resolved most of their conflicts over the issue.
The Justice Department opposed a similar deal that Continental struck with nine airlines in the Star Alliance earlier this year. But Transportation officials had already given their informal approval. The Antitrust Division and Senate Judiciary Committee Democrats argued the partnership would limit competition and harm consumers. The Transportation Department has final authority over such arrangements.
The fight between the two departments spilled over onto the front page of the New York Times, which reported that White House economic adviser Lawrence Summers was called in to mediate.
This time, he probably won’t get a call.
“You are going to see better coordination” between the Transportation and Justice Departments, former Transportation official Patrick Murphy told Bloomberg. Transportation officials have until the end of the month to issue a formal ruling.
