OAG Travel News

Continental Airlines has been given a tentative nod from the US Department of Transportation for its plans to join the Star Alliance.

The DOT said it would grant Continental antitrust immunity for its participation in the alliance, which also includes United Airlines and Lufthansa.

Continental also received approval for a trans-Atlantic alliance with Air Canada, Lufthansa and United.

"Antitrust immunity allows airlines to coordinate their services and act as a single carrier for international air services covered by the immunity," the DOT said in a statement.

The DOT said the alliances would increase service in international markets, give consumers more options and shorter trip times, and reduce fares.

The public has 21 days to file objections to the plans.

Under conditions of the approval, the airlines must implement the alliance within 18 months and provide annual reports for regulators.

The move was welcomed by British Airways, which is currently seeking a similar joint venture with its Oneworld partners American Airlines and Iberia.

“We welcome the US Department of Transportation's initial view that by granting anti trust immunity to Continental and approving the Star Alliance joint venture, it would bring benefits to consumers,” said a spokesman.

“Our plans for a transatlantic joint business with American Airlines and Iberia would bring similar benefits to consumers and we hope that the US DOT will grant us anti trust immunity so that we can operate this joint business.

“It would also enable oneworld to compete on the same competitive basis as the other major global alliances, Star and Skyteam.”

Source: www.travelmole.com report by Bev Fearis