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Old Nov 27, 2016, 6:41 pm
  #1  
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United/Asiana Joint Venture?

Does United have a joint venture with Asiana?

In 2003, United and Asiana applied for antitrust immunity and received it from the US DOT. Their joint application (link) stated the following (bolding added):

United and Asiana intend to expand their cooperative activities in each of the following principal areas:
1. Route and schedule coordination. [...]
2. Marketing, advertising, and distribution. [...]
3. Co-branding and joint product development. [...]
4. Code sharing. [...]
5. Pricing, inventory, and yield management coordination pricing. [...]
6. Revenue sharing. [...]
7. Joint procurement. [...]
8. Support services. [...]
9. Cargo services. [...]
10. Information systems. [...]
11. Frequent flver programs. [...]
12. Financial reporting. [...]
13. Harmonization of standards/quality assurance. [...]
14. Technical services/maintenance. [...]
15. Facilities. [...]
The US DOT still considers the United/Asiana partnership to have antitrust immunity, listing it as one of the currently active immunized airline alliances (link).

However, unlike with other airline JVs (which are typically accompanied by significant marketing and press), there is no mention of any United/Asiana joint venture outside of this DOT decision.

So do United and Asiana have a joint venture or not? And if not, what happened, and why is their antitrust immunity still active?
lamont2718 is offline  
Old Nov 29, 2016, 5:33 am
  #2  
 
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Originally Posted by lamont2718
Does United have a joint venture with Asiana?

In 2003, United and Asiana applied for antitrust immunity and received it from the US DOT. Their joint application (link) stated the following (bolding added):



The US DOT still considers the United/Asiana partnership to have antitrust immunity, listing it as one of the currently active immunized airline alliances (link).

However, unlike with other airline JVs (which are typically accompanied by significant marketing and press), there is no mention of any United/Asiana joint venture outside of this DOT decision.

So do United and Asiana have a joint venture or not? And if not, what happened, and why is their antitrust immunity still active?
I remember Asiano joined Star Alliance around 2003.
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Old May 12, 2017, 3:23 pm
  #3  
 
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Originally Posted by lamont2718
So do United and Asiana have a joint venture or not? And if not, what happened, and why is their antitrust immunity still active?
1. They don't have a JV. There is a rumor that Asiana CEO wants to have a JV with UA or other airlines (might be NH/SQ, not LH), and they might talk about it at the 20th Anniversary of Star Alliance.

2. I don't know why they have an active antitrust immunity either. Isn't JV sort of required for ATI?
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Old May 12, 2017, 4:45 pm
  #4  
 
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Originally Posted by dewdreamdawn
1. They don't have a JV. There is a rumor that Asiana CEO wants to have a JV with UA or other airlines (might be NH/SQ, not LH), and they might talk about it at the 20th Anniversary of Star Alliance.

2. I don't know why they have an active antitrust immunity either. Isn't JV sort of required for ATI?
On 2, when you apply it's just a proposal, so presumably you don't have to implement the proposal fully. That said, a lot of the cooperative activities proposed don't require a JV - they can be accomplished by agreements that aren't a full JV.
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Old May 12, 2017, 4:46 pm
  #5  
 
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Originally Posted by worldwidedreamer
I remember Asiana joined Star Alliance around 2003.
Knowing UA had invested more flying into Japan (as part of fifth freedom flying rights), Joint venture with NH has much more teeth than with OZ.

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Old May 12, 2017, 6:09 pm
  #6  
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Originally Posted by drewguy
On 2, when you apply it's just a proposal, so presumably you don't have to implement the proposal fully. That said, a lot of the cooperative activities proposed don't require a JV - they can be accomplished by agreements that aren't a full JV.
i beleive this is the case with the AC JV. UA/AC applied for a JV covering basically North America (they are both already part of the TATL one with LH). IIRC, Regulators approved it, with some significant carve outs that the carriers didn't like, and so I don't beleive it was ever implemented.
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