DOT plan approval for US-Japan antitrust immunity

The US Department of Transportation (DOT) released a proposal to grant antitrust immunity between United Airlines, Continental Airlines and All Nippon Airways to expand their alliance in the trans-Pacific region.

The new agreement would allow carriers from both Japan and the US to coordinate flights between the two countries based on customer demand and cargo service, “without the limitations of the number of US or Japanese carriers that can fly between the two countries or the number of flights they can operate”.

“In today’s show cause order, the Department tentatively found that granting antitrust immunity to each alliance would provide passengers and cargo with a variety of benefits, including lower fares on more routes, increased services, better schedules, and reduced travel and connection times,” DOT said in a release.

United Airlines President and Chief Executive Officer Jeff Smisek said they are pleased with the DOT’s decision and expects customers to be equally as thrilled with the new benefits available under the alliance.

“We thank DOT for their thoughtful review, and look forward to final approval.”

DOT has awarded parties 21 calendar days to comment and seven days to file answers until a final decision is announced. 
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