Delta Air Lines, Continental Airlines and Northwest Airlines can proceed with a massive marketing alliance after US regulators gave the deal the green light.
The codesharing agreement – the biggest to date in airline industry – will see the three operators sell seats on each other’s planes.
Although the government is keen to help the nation’s struggling airlines, the Justice Department nevertheless imposed some conditions on the triumvirate. It must not share revenues or team up to set fares, and will be watched for signs of anti-competitive behaviour.
“This alliance agreement, as conditioned, has the potential to lower fares and improve service for passengers in many markets throughout the country,” declared R Hewitt Pate, acting chief of the government agency’s antitrust arm.
“The operation of the alliance remains fully subject to the antitrust laws, and the department will be vigilant in continuing to monitor the operation of the alliance.”
Data sourced from: BBC Online Business News (UK); additional content by WARC staff
