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May 22, 2008

DOT Helps Strengthen Delta, Northwest, and International Partners

Filed under: Airlines, Alliances — Rick Seaney @ 5:23 pm

The Dept. of Transportation is helping to strengthen ties between Delta Air Lines, Northwest Airlines, and four Europe-based carriers by granting anti-trust immunity to combine their transatlantic operations in an expanded Sky Team Alliance:

The Department’s grant of antitrust immunity allows the two U.S. carriers, along with Air France, Alitalia, Czech Airlines and KLM Royal Dutch Airlines, to coordinate their transatlantic fares, services and capacity as if they were a single carrier in these markets, subject to certain conditions. Northwest has an existing alliance with KLM, while Delta has an existing alliance with Air France, Alitalia and Czech Airlines.” — DOT

Such alliances are nothing new; but what can more of them do for you? Keep reading…

The hope is that alliances will benefit passengers with more options, easier flight paths, cheaper flights, and even better lounges.

In my latest abcNews column, I touched on “gimmicks” airlines might try in an effort to make more money as fuel costs continue to soar. One of them was a domestic alliance along the lines of what we see happening between US and foreign carriers — which could have the opposite effect — leading to higher costs and fewer choices.

However, this latest anti-trust immunity ruling could expand choices for passengers. And in case you were wondering, it will not affect the anticipated Delta/Northwest merger (though the merger will need to pass other anti-trust reviews).

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