Justice Dept. opposes immunity for NWA, Delta in SkyTeam
Tuesday August 23, 2005
US Dept. of Justice, in comments filed with the US Dept. of Transportation last week, opposed the granting of antitrust immunity to Northwest and Delta Air Lines and Alitalia, KLM, Air France and Czech Airlines, all of whom are members of SkyTeam, citing a "significant risk that the requested immunity would reduce competition on certain international routes" while arguing that the "claimed benefits are modest."
Northwest already enjoys antitrust immunity with KLM, which became a part of SkyTeam through its merger with Air France, and Delta enjoys antitrust immunity with the other members of the alliance excluding KLM and NWA. Northwest previously warned that without antitrust immunity, it will be forced to dissolve its alliance with KLM, the first such linkage in the airline industry and the one that is acknowledged as being the most highly integrated.
"Immunizing an alliance between [Northwest and Delta] risks significant harm to certain international and domestic competition," DOJ stated, adding that unlike earlier tie-ups, this one applies "to largely overlapping networks, not end-to-end extensions of networks."
Among US competitors, American Airlines was the only carrier to file in opposition to the agreement. Final authority over the alliance rests with the Transportation Dept.