Continental alliance could hurt competition, feds say

Continental Airlines’ request for antitrust immunity to join an alliance with United Airlines and other carriers is too broad and could hurt competition in Latin America and the Pacific, the U.S. Justice Department says in a regulatory filing. In the document, the Justice Department said the U.S. Department of Transportation should reverse its April order granting tentative approval to Continental’s application to join the Star Alliance in October, with antitrust immunity for all global operations. Instead, Justice Department officials recommend limiting the immunity among Star Alliance members to certain routes only. Extending the reach Alliances let carriers extend their reach by sharing ticketing, scheduling and other functions with competitors, while avoiding labor and regulatory issues associated with corporate mergers.... [read full story]                    

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