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Truc's Blog

Monday, July 9, 2007

SkyTeam members ask US for anti-trust immunity on Atlantic routes

PARIS (AFP) - Six airlines have asked US authorities for anti-trust immunity on trans-Atlantic services within the framework of an "open skies" agreement between the European Union and United States.
Approval by the US Department of Transportation would provide SkyTeam alliance members with protection against lawsuits as competition increases on lucrative routes between Europe and North America.

An application was also made for a joint venture agreement between Air France-KLM, Delta, and Northwest "that would create a comprehensive and integrated partnership among the four SkyTeam members across the Atlantic," Air France said Friday.

In addition to the four carriers, SkyTeam also includes the Italian airline Alitalia, Continental Airlines and CSA Czech Airlines, and transports a total of 373 million passengers a year.

Delta already has anti-trust immunity with Air France, Alitalia and CSA, while Northwest has anti-trust immunity with KLM.

"This application is the first under the landmark European Union-US open skies treaty which creates the largest, most important, and fully liberalized air transport marketplace in the world," an Air France statement said.

The accord took effect on March 30 and eliminated most limitations on US and EU airlines' ability to fly between the two continents.

It also lifted restrictions on EU carriers buying big stakes in US airlines, although their voting rights in a US carrier would remain capped at 25 percent.

The US Department of Transportation has approved more than 20 applications for anti-trust immunity in the past, the statement noted, including one for nine rival Star Alliance members.

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