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AA and four oneworld partners apply for Antitrust Immunity

 
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Old Jul 24, 2007, 8:34 am
  #1  
SK
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AA and four oneworld partners apply for Antitrust Immunity

AA, Iberia, Finnair, Malev Hungarian Airlines, and Royal Jordanian Airlines have applied for antitrust immunity effective March 30, 2008, according to a PRNewswire-FirstCall article, as carried by Yahoo!
The application seeks to allow the five airlines "to cooperate in a wide variety of operational areas that will provide a more seamless travel experience for customers. Those areas include: codesharing, frequent flyer programs, route and schedule planning, advertising and marketing, pricing and yield management, revenue allocation, ground handling, cargo services, information technologies and distribution systems, and several other areas."
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Old Jul 24, 2007, 8:41 am
  #2  
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One can hope that this has implications of upgrades on non-AA metal.

Cheers.
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Old Jul 24, 2007, 9:06 am
  #3  
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Originally Posted by brp
One can hope that this has implications of upgrades on non-AA metal.
And leads to the addition of BA after the LHR free-for-all begins next Spring.
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Old Jul 24, 2007, 9:57 am
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Originally Posted by brp
One can hope that this has implications of upgrades on non-AA metal.

Cheers.
No, the inplications are they can all fix their pricing. They do not do this stuff for us.
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Old Jul 24, 2007, 1:11 pm
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Well, they can also coordinate schedules which could make things more convenient for consumers. But yeah, I don't think antitrust has anything to do with upgrades.
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Old Jul 24, 2007, 2:54 pm
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No, the inplications are they can all fix their pricing. They do not do this stuff for us.
Exactly. Who do I write to oppose this?
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Old Jul 24, 2007, 3:34 pm
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No, the inplications are they can all fix their pricing. They do not do this stuff for us.
Couldn't have said it better myself. Did anyone else have that econ prof. back in college who said that price fixing was the worst thing in the world in business? sorry if its hard to remember, I know it was a bit more recent for some of us (but then again i havent earned lifetime status yet)
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Old Jul 24, 2007, 8:26 pm
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Originally Posted by ByrdluvsAWACO
Exactly. Who do I write to oppose this?
Your politicians, please include a $100k contribution as AA does.
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Old Jul 25, 2007, 3:11 am
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American seeks antitrust immunity for alliance

American seeks antitrust immunity for alliance

By TERRY MAXON / The Dallas Morning News

American Airlines Inc. said Tuesday that it has asked the U.S. Department of Transportation to grant antitrust immunity to its alliance with four international carriers.
However, the list did not include British Airways PLC, its most important partner in the Oneworld alliance.

American wants to coordinate fare-setting, scheduling, frequent-flier programs, marketing, code-sharing and other activities with Iberia, Finnair, Malev Hungarian Airlines and Royal Jordanian Airlines, which belong to the Oneworld global airline alliance with American, British Airways, Japan Airlines and other carriers.

"We believe that an alliance with antitrust immunity is of vital strategic importance and will help us remain competitive with other trans-Atlantic alliances that already have such immunity," said Henry Joyner, American's senior vice president of planning.

[cut]

American and British Airways have twice sought antitrust immunity for their trans-Atlantic partnership, which predates the Oneworld alliance. But antitrust regulators have required concessions that the carriers wouldn't accept.

American chairman and chief executive Gerard Arpey said last week that American was "in a dialogue" with British Airways about how to proceed.

"Certainly, our view would be that if immunity is granted to our competitors, that the antitrust body should begin to look at the competition between alliances rather than on the city-pair basis that they have looked historically," Mr. Arpey said.
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Old Jul 25, 2007, 3:19 am
  #10  
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Last edited by JDiver; Jul 25, 2007 at 7:00 am Reason: recurving link deleted - thanks, tom911!
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Old Jul 25, 2007, 3:38 am
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Originally Posted by millionmiler
...
However, the list did not include British Airways PLC, its most important partner in the Oneworld alliance.

American wants to coordinate fare-setting, scheduling, frequent-flier programs, marketing, code-sharing and other activities with Iberia, Finnair, Malev Hungarian Airlines and Royal Jordanian Airlines, which belong to the Oneworld global airline alliance with American, British Airways, Japan Airlines and other carriers.

"We believe that an alliance with antitrust immunity is of vital strategic importance and will help us remain competitive with other trans-Atlantic alliances that already have such immunity," said Henry Joyner, American's senior vice president of planning.

[cut]

American and British Airways have twice sought antitrust immunity for their trans-Atlantic partnership, which predates the Oneworld alliance. But antitrust regulators have required concessions that the carriers wouldn't accept.

American chairman and chief executive Gerard Arpey said last week that American was "in a dialogue" with British Airways about how to proceed.

"Certainly, our view would be that if immunity is granted to our competitors, that the antitrust body should begin to look at the competition between alliances rather than on the city-pair basis that they have looked historically," Mr. Arpey said.
Which seems consistent with the comments made when Open Skies was announced:

http://www.flightglobal.com/articles...trust-woe.html
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Old Jul 25, 2007, 7:12 am
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Originally Posted by millionmiler
American wants to coordinate fare-setting, scheduling, frequent-flier programs, marketing, code-sharing and other activities...
What does that mean? I hope it means that the others will start to award 100% miles on discount economy fares, NOT the reverse. Would AA ever start behaving unreasonably, like BA, and only award a mean 25%?
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Old Jul 25, 2007, 7:30 am
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Originally Posted by salut0
What does that mean? I hope it means that the others will start to award 100% miles on discount economy fares, NOT the reverse. Would AA ever start behaving unreasonably, like BA, and only award a mean 25%?

Why is American "right" and BA "wrong"? The BA scheme seems to be designed to encourage travellers to pay for premium price seats, whereas AA seems to encourage sheer BIS miles. Is that "wrong"? Or merely different?

Slightly off the topic, it's actually been easier for me to qualify as a BA silver than it was a maintain AA PLT, but I earned less 'free' travel. It seems to depend on what you value most.
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Old Jul 25, 2007, 8:31 am
  #14  
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Originally Posted by salut0
What does that mean? I hope it means that the others will start to award 100% miles on discount economy fares, NOT the reverse. Would AA ever start behaving unreasonably, like BA, and only award a mean 25%?
The BA programme gives greater rewards to those that travel in premium clabins and those on full fares. It therefore encourages people to travel in J and F and all on "full" Y, B, H fares.

This is unreasonable because....... ?
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Old Jul 25, 2007, 8:33 am
  #15  
brp
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Originally Posted by Smirnoff
The BA programme gives greater rewards to those that travel in premium clabins and those on full fares. It therefore encourages people to travel in J and F and all on "full" Y, B, H fares.

This is unreasonable because....... ?
Because many of us like to fly on the cheap and still get full benefits. Clearly, anything that denies us 100% mileage at rock bottom prices is unreasonable

Cheers.
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