US Department of Transportation (DoT) proposed (06-Oct-2010) antitrust immunity for United Airlines, Continental Airlines and All Nippon Airways, that would enable them to expand their alliance relationship, resulting in enhanced competition, increased fare options and improved schedules and service in trans-Pacific markets. Upon final approval of antitrust immunity, contingent on the signing of an open skies agreement between the US and Japan, United and Continental intend to establish with ANA a first-of-its-kind trans-Pacific joint venture, managing scheduling, pricing and sales and offering customers a greater selection of routings and a wider range of fare and service options. DoT also granted tentative antitrust immunity for Japan Airlines and American Airlines, both members of the oneworld alliance, having consolidated the two requests into a single proceeding in Mar-2010. DoT found the carriers’ cooperation in two separate alliances would improve competition, lower fares and increase schedule options, according to an agency statement. [more]
DoT grants tentative antitrust immunity approval to United, Continental and ANA
You may also be interested in the following articles...
Delta-Korean Air joint venture creates trans-Pacific's second largest bloc. Cathay, EVA under threat
The unprecedented aviation market growth between Asia and North America is forcing airlines to re-evaluate their core strategy and reassess who is a competitor and who could be a partner. It seems probable that Delta Air Lines and Korean Air will form a joint venture, potentially making them the second largest trans-Pacific bloc.
The next two largest airlines without a deep partnership, EVA Air and Cathay Pacific, are having to confront significant change, without the support of partners. Delta-Korean Air brings United-ANA its closest rival yet, while the American-JAL JV – already smaller – needs bulking up.
Korean Air brings Delta a wider network in Asia than ANA or JAL offer to their respective JV partners, United and American. A Korean Air-Delta JV could result in more destinations and flights being added once they are able to sell jointly.
China-Japan aviation: LCCs Peach, Jetstar Japan gain traffic rights, raising overcapacity concerns
Jetstar Japan and Peach Aviation have received air traffic rights for China which, if utilised, would grow the Japanese LCC footprint in China – Japan's largest visitor source market. Spring Japan became the first Japanese LCC to serve China in Feb-2016. The absence of Japanese LCCs in China may seem surprising, but there are regulatory hurdles, market access questions and conservatism at Japanese LCCs. AirAsia Japan, launching in 2017, will likely leverage the group's China experience; it is the largest non-greater China airline group serving China.
The prospect of further growth comes as incumbents cite overcapacity. What was once a profitable market now only produces returns in the peaks. All Nippon Airways, the largest airline between Japan and China, reported lower revenue on the back of "a deterioration in the supply-demand environment". Spring China has told Bloomberg that some competitors "aren't well-prepared", and will be "phased out". Overall Japanese LCC routes and capacity may be small but will be watched by Chinese airlines, ever mindful of the need to find new business models.