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Old Mar 29, 2001 | 4:27 pm
  #5  
MagMile
 
Join Date: Jul 2000
Location: ORD
Posts: 642
Okay, since this might arguably be in the right forum (and I definitely support putting threads in the right forums), what is there to talk about? I'm always happy to talk about either FFP or Antitrust Law, but I'm not sure what issues of interest lie in the intersection.

As a first approximation, most FFPs are offered by individual airlines, so their status is no more subject to antitrust scrutiny than their individual pricing decisions. But I can think of a couple of issues:

1. The worldwide alliances (Star, Oneworld) include airlines that are competitors on some/many routes. Were there any issues in allowing them to form an alliance? There are obvious benefits in the scope of these programs that could not have been obtained by individual airlines, but were there any concerns about effect on competition? (The code share agreements, albeit not directly FFP-related, seem even more debatable.)

2. What about U.S. domestic agreements between airlines. E.g., United and Delta have an agreement that provides certain options for earning and redeeming miles on the other airline. Was there any antitrust scrutiny of that or similar agreements? Obviously, there were benefits for United/Delta passengers in being able to get credit/awards on the other airline. Was there any concern that it would limit the incentive of each airline to compete against the other? (The exact mechanics of competition wrt FFP is not obvious to me, and may be interesting to study.)
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