DOT 17-03
Monday, March 3, 2003
Contact: Bill Mosley
Tel.: (202) 366-5571
DOT
Seeks Comment On Alliance Carriers’ Revised Agreement
The U.S. Department of Transportation (DOT) today asked for
public comment on the resubmitted marketing agreement of Delta Air Lines,
Northwest Airlines and Continental Airlines.
Public comment will be due in 15 days, and the department said it will
conclude its review of the resubmitted proposals in 30 days.
On Aug. 23, 2002,the three carriers submitted their code-sharing and frequent-flyer reciprocity agreements to DOT for review as required by law. On Jan. 17, the department announced that it would not seek to block the carriers from implementing the agreement if they accepted six conditions that would address the department’s competitive concerns. On Jan. 22, the carriers notified DOT that they intended to move forward with the alliance without complying with all of the department’s conditions. That same day, DOT reaffirmed its intent to begin an enforcement proceeding to determine whether the alliance agreements are unlawful. The department and the carriers afterward had a number of informal consultations over the following month regarding the agreements and DOT’s concerns. The carriers have not implemented the agreements while those discussions were ongoing.
In the resubmitted agreement, the carriers acknowledged the department’s authority, accepted three of the department’s conditions as written, and asked that DOT accept alternative language for the other three conditions. The conditions for which the carriers submitted alternative language involve access to facilities, ensuring benefits to small communities and preventing anti-competitive joint marketing agreements. The department is requesting comment only on issues associated with the carriers’ proposed alternative language.
In its notice, the department said that if it determines
that the alternative language addresses its concerns it would not institute an
enforcement proceeding at this time. However,
the department would continue to monitor the carriers’ implementation of the
alliance and would take enforcement action in the future if necessary.
The department’s notice and the carriers’ resubmitted notice are available on the Internet at www.dot.gov/affairs/briefing.htm.
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