08 July 2009

Star Current and Future Members Unhappy

So the DoJ has taken the gloves off on the ATI for CO to join the Star Alliance.

Justice is clearly sending a message that the concentration of the Alliance model cannot impede competition. And more power to them for finally waking up to that fact. The Europeans up till this point have perhaps been more aggressive - however the fait accompli of several alliances and mergers in the face of airline shut downs has muted their voice in decrying the behavior.

I believe that the DoJ is right in recommending dis-approval of the ATI. At the same time they should also not allow the BA AA transatlantic ATI to proceed. Approving one means by definition approving the other. But what of the existing DL/AF alliance? well there is already and existing Star set of immunity so the balance is really still there. So overall - it probably should be allowed to remain albeit with certain caveats based on performance in the next few years.

Let's hope that rationality trumps expediency.


No comments: