The Show Cause Order (SCO) that was issued by the DOT proposes to…
The Show Cause Order (SCO) that was issued by the DOT proposes to positively grant broad codesharing authority to the six members of the SkyTeam international aviation alliance, to enhance their short term network benefits.
The decision at the same time proposes to deny the request for anti trust immunity. The Air France KLM Group regrets the fact that the US authorities have chosen to effectively defer a decision to grant the application of six airlines for anti-trust immunity (ATI) on trans-Atlantic routes, until there is more clarity on the move towards further liberalization of the transatlantic markets.
Since a number of years, Air France, Alitalia, CSA Czech Airlines and Delta Air Lines on one side, as well as KLM and its partner Northwest on the other, all benefit from two sets of valid antitrust immunities previously granted by the American authorities.
On 24 September 2004, the six airlines filed a broad codesharing application and an additional joint application for antitrust immunity (ATI) with the U.S. Department of Transportation (DOT), a logical consequence to the Air France-KLM merger.
Air France and KLM will now carefully review the text and file appropriate comments with DOT within the next days. A final decision should be taken by the US Authorities early in 2006.
Air France and KLM are known and active supporters of the policy to open up the transatlantic market to the benefit of the air transport sector and the travelling public. The requested codesharing application and joint application for antitrust immunity are a logical complement to the tentative agreement that was reached between the US and the EU on a transatlantic liberalised market.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
