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13-Jul-2009 5:50 AM

Continental can join Star Alliance: DoT. Global alliances and the demise of the US airline industry

Analysis

On Friday, 10 Jul-09, the US Department of Transportation issued a ruling granting antitrust immunity for Continental Airlines' membership of the Star Alliance (Docket number OST-2008-0234). Unlike the negative approach of the Department of Justice in its submissions on the proposal, the DoT considered that "The venture, as well as the broader alliance, will create substantial new service options and fare benefits for consumers." The effect is to allow all carriers under the antitrust umbrella to coordinate prices and schedules.

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