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Order 2008-5-32 - Alitalia, Czech, Delta, KLM, Northwest and Air France (SkyTeam) - Final Order - Antitrust Immunity


Alitalia, Czech, Delta, KLM, Northwest, Air France (SkyTeam)

Order 2008-5-32
OST-2007-28644 - Approval of and Antitrust Immunity for Alliance Agreements

Issued and Served May 22, 2008

Final Order

In the Show Cause Order, we conducted competitive and public interest analyses from which we drew several tentative findings and conclusions. Pursuant to 49 U.S.C. § 41309, we conducted a competitive analysis to assess the effects of granting immunity at the U.S.-Europe, U.S.-country pair, city-pair, and U.S. domestic market level. We noted that the four-way joint venture between Delta, Northwest, Air France, and KLM – submitted for the record – provided the details necessary for us to assess the competitive implications of integration and any resulting public benefits. We further noted that the alliance would operate under the U.S.-EU Air Transport Agreement, which is a regional agreement that enhances competition in new ways by facilitating entry by duly authorized carriers on any routes between the U.S. and the EU (with open intermediate and beyond rights). Having analyzed the effect of the alliance in multiple markets, and having considered the regulatory environment, we
tentatively determined that the alliance would not substantially lessen competition. Therefore, we proposed to approve the Alliance Agreements.

Having reviewed all pleadings, we have determined that no party submitted any evidence persuasively showing that the findings and conclusions in our competitive and public interest analyses were flawed. Nor did any party challenge the proposed conditions which were designed to ensure the realization of public benefits. We therefore adopt all findings, conclusions, and conditions as stated in the Show Cause Order.

By: Michael Reynolds

DOT Approves Expanded Transatlantic Alliance Involving Delta, Northwest - DOT Press Release

http://www.skyteam.com


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