SInGAPORE_AIR
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US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 5:37 am

Delta link with Air France wins initial approval
By Peter Spiegel in Washington
Published: December 22 2001 01:13 | Last Updated: December 22 2001 01:17

US regulators on Friday gave Delta Air Lines and Air France preliminary approval for their proposed alliance, which would allow the two carriers to operate as one on transatlantic routes, and said final approval would probably come next month.

The Transportation Department said it had reviewed all submissions by the airlines and opponents to the deal and had found no reason to block the alliance. Rivals have two weeks to raise any issues before final approval is granted, which is usually a formality.

The clearance - which would exempt the airlines from US antitrust laws so they could share revenues, scheduling and pricing information on transatlantic routes - has been expected ever since the US and France signed a new "open skies" air liberalisation treaty in October.

Delta and Air France's application for antitrust immunity, submitted in August, also requested identical treatment for CSA Czech Airlines and Alitalia - all four are members of the global SkyTeam alliance - which were also given preliminary approval.

The approval leaves British Airways as the last of the largest European airlines without an immunised alliance with a US partner. Lufthansa and United have already been granted such treatment, as have KLM and Northwest.

BA's application for antitrust immunity with American Airlines is before the Transportation Department, which is expected to rule on their request next month.

The Air France-Delta tie-up has generated little opposition, largely because the US-Paris market is less coveted than flights between the US and London's Heathrow airport.

Anyone can fly, only the best Soar.
 
go canada!
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 5:39 am

hypocrites...
there is more competiton at london than at paris!
It is amazing what can be accomplised when nobody takes the credit
 
2cn
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 6:03 am

hypocrites...
there is more competiton at london than at paris!


No theres not. Only two US airlines can get into Heathrow.. any US airline can fly into Paris if they want.
 
UK_Dispatcher
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RE: BD/UA To Form Similar Alliance? See Release>

Sun Dec 23, 2001 6:09 am


bmi british midland, the UK’s second largest airline, is confident that it will be launching transatlantic services to the United States from London Heathrow in 2002.

The airline has shown governments and regulators on both sides of the Atlantic the significant consumer benefits to be gained by opening up the transatlantic market from London to competition.

Sir Michael Bishop, chairman of bmi, said:

“We have today sought formal clearance of our alliance with United Airlines from the UK Office of Fair Trading (OFT) as well as informing the European Commission in Brussels.

"We are confident that our application will receive swift approval, as the alliance will create new competition on London – US routes. This action will give bmi and United Airlines the full scope of regulatory clearance necessary to operate a fully integrated transatlantic network.

"We have set out the clear benefits that our alliance will bring. It is totally unacceptable that within the European Union all major airports are free to trade openly with the USA, yet the United Kingdom - which is by far the biggest market - still remains shackled by an outdated agreement going back to the 1970s. It simply goes against the grain of common sense and the principles of consumer choice that governments claim to support.

"Much appears in the media today about the success of the so called "low cost - no frills" carriers and the impact they have had on further reducing fares and expanding markets. The catalyst for that change and the success of such airlines was the creation of open skies within the European Community. Consumers in the UK have been denied the similar benefits that an open skies agreement between London and the USA would clearly bring. Benefits that the majority of European countries now enjoy thanks to their own open skies agreements with the US being in place.

The time to act is now when airlines desperately need the freedom to meet the demands of consumers and put UK travellers and businesses on the same footing as their European counterparts.

"The bmi / United alliance will enable us to compete effectively at Heathrow against other alliances such as the proposed BA / AA oneworld alliance and the existing Virgin / Continental tie-up. We will also be able to ensure that Heathrow adds new competition to other global alliances that operate from competing European hub airports, such as Northwest / KLM, and Air France / Delta with Alitalia. London must maintain its competitive edge against other European hubs such as Paris and Amsterdam.”

14DEC01 - www.flybmi.com
 
donder10
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 6:12 am

US airlines that fly into London:BA,AA,NW,UA,BD,VS,US,DL,CO
 
SInGAPORE_AIR
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 6:19 am

Airlines (non-US and US) that fly into LHR - British Airways plc, American Airlines, United Airlines, Virgin Atlantic Airways Ltd.
Anyone can fly, only the best Soar.
 
LV
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 7:56 am

If BMI is given approval to fly US-LHR routes, will another US flag carrier get premission to fly this route? Who will it be?
 
SInGAPORE_AIR
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 7:59 am

LV, it would probably start a precedent. I couldn't choose between them however DL/NW or someone would look likely. Not CO as they have LGW.
Anyone can fly, only the best Soar.
 
donder10
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 8:02 am

Hence there is competition in London on trans-atlantic flights.
 
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OA412
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 2:13 pm

The US will not grant BMI permission to serve any US point ex-LHR until another US carrier is given reciprocal rights. Right now, it appears to be between DL/CO, although there was a time in early 2001 when it was assumed that both would gain entry to LHR in exchange for BMI gaining access to the LHR-USA market.

Those of you that argue that the London-US market is competitive are seriously mistaken. First, there is no comparison between serving LGW and LHR. Everyone knows that LHR is the higher-yield airport preferred by the vast majority of business travellers for its proximity to central London. Second, the London-US market is restricted in the number of US destinations (I believe it is currently at 29) that may offer service to London. This is neither true of FRA or (more recently) of CDG/ORY. All major US, and almost all major UK, airlines serve the London-US market, but you cannot argue that those restricted to LGW are on an equal playing field as those allowed to offer flights from LHR.
Hughes Airwest - Top Banana In The West
 
2cn
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 3:19 pm

Hence there is competition in London on trans-atlantic flights.

There might be competition on the ENTIRE route system to the London area from America, but there is not much of any competition on the US-Heathrow Airport route.. which is the problem with the AA/BA alliance. They should not be granted this alliance until more airlines then just two US airlines can fly their own flights, not codeshares, into Heathrow. That is where alot have a problem with the proposed alliance, and that is also why so many say there is no competition on the route.
 
DL WIDGET HEAD
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RE: US D.o.T Gives Initial Approval To DL/AF Alliance

Sun Dec 23, 2001 4:42 pm

Donder10, do your homework before you make a post on this forum. You stated "US airlines that fly into London:BA,AA,NW,UA,BD,VS,US,DL,CO". Ah, last time I checked British Airways (BA), BMI British Midland (BD), and Virgin Atlantic (VS) are all BRITISH airlines NOT US--let's not oofend the crown. Also, your not comparing apples to apples. LHR is the most important European airport in the world for business, connections, proximity to London, etc, etc. Access to this market (LHR) is far more lucrative, advantageous, and coveted than serving LGW. Your analogy just does not make sense. It's like saying that sufficient competition exists in the LGA (New York City) market simply because airlines serve ISP (Islip, New York). The most sought after landing rights at any of the New York Area airports is LGA because of its convenience to the city and tremendous volume of business passengers, much like LHR. No other airline is against the BA/AA alliance (except maybe VS) rather, their refusal to relinquish some slots so that 2 airlines won't dominate the North American-LHR market.

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