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DOT 46-03
Contact: Bill Mosley
Friday, May 30, 2003
Tel.: (202) 366-5571
DOT
Announces Final Approval of American-British Airways Code-Sharing
The U.S. Department of Transportation today issued a final decision approving a code-sharing arrangement between American Airlines and British Airways.
Today’s action makes final the
tentative decision issued on April 9.
The American-British Airways
code-sharing arrangement will produce new opportunities to the public
benefiting passengers, shippers and communities, the department said.
Under the arrangement, each carrier will sell tickets of the other carrier for travel on its own flights (code sharing), thereby expanding each carrier’s service. The arrangement will cover a broad range of operations throughout each carrier’s route system. However, it will not cover nonstop U.S.-London flights. Unlike applications they previously filed with the department, the carriers did not request antitrust immunity for this arrangement. The code-sharing rights are effective immediately and will remain in effect for two years.
In its final decision, the department reaffirmed its tentative conclusion that the proposed code-share services are provided for under the U.S.-U.K. bilateral aviation agreement, that they would offer enhanced service to the public, and that they would not impair competition. In a modification of the tentative decision to which the applicants agreed, DOT said that the carriers initially may offer code-share services between the United Kingdom and specific third-country markets where there are no restrictions that would require a U.S.-carrier selection proceeding. The final order also requires the carriers to notify the department for its review 30 days in advance if they plan to begin code-share service on any additional routes.
American
and British Airways applied for code-sharing rights on Nov. 18, 2002. The code sharing approved today would not
permit the carriers to plan and coordinate services as antitrust immunity would
allow. The department has said
that an Open Skies agreement, which eliminates restrictions on air services
between and beyond the participating countries, is a prerequisite to granting
antitrust immunity. The goal of
the United States remains replacing the current restrictive agreement with Open
Skies.
The carriers’ application, the show-cause and final orders, and public comments may be obtained on the Internet at http://dms.dot.gov, docket number OST-2002-13861.
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