DOT 4-03
Friday, January 17, 2003
Contact: Bill Mosley
Tel.: (202) 366-5571
DOT
Conditionally Allows Delta-Northwest-Continental Code-Sharing Agreement
The U.S. Department of Transportation (DOT) today announced
that it has completed its review of a code-sharing agreement among Delta Air
Lines, Northwest Airlines and Continental Airlines and will allow the agreement
to take effect subject to acceptance by the carriers of certain conditions
designed to preserve airline competition.
The decision, which follows a thorough analysis of
information received from the carriers and public comments, would allow the
carriers to place their designator codes on each other’s flights in most
markets. The department allowed a
similar agreement between United Airlines and US Airways to take effect on Oct.
2, 2002.
DOT officials noted that they had carefully reviewed a
complex set of issues raised by the proposed agreement, and had struck a middle
ground favorable to consumers that allows the alliance carriers to enjoy
increased efficiencies. In
addition, the agreement encourages better service to smaller communities while
maintaining competitive opportunities for low-fare carriers and others.
For example, under the DOT provisions the alliance carriers would have to
make surplus airport gates available to other carriers, and 60 percent of any
new code-sharing flights resulting from the alliance would have to be operated
to unserved, underserved or smaller communities.
The carriers submitted proposed agreements for code-sharing
and reciprocal frequent-flyer programs to DOT on Aug. 23, 2002 under a statutory
requirement that such agreements between major U.S. airlines be filed with the
department at least 30 days before they take effect.
The department may extend the review period for a code-sharing agreement
to a total of 150 days beyond the initial 30-day period.
DOT had extended the review period for the code-sharing agreement beyond
the original waiting period to allow time to complete its analysis.
The department’s statutory responsibilities in this matter are separate
from those of the Department of Justice, which has the responsibility to enforce
the antitrust laws.
DOT said the restrictions that would be imposed on the carriers, summarized briefly below, are intended to address competitive concerns raised by the joint venture.
The department’s decision may be obtained on the Internet at www.dot.gov/affairs/briefing.htm.
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