Air Transport World

DOT okays VA-US alliance despite concerns. (News Briefs).(Department of Transportation allows United Airlines and US Airways codesharing agreement)(Brief Article)

US Dept. of Transportation's Oct. 2 decision not to challenge the broad codesharing agreement between struggling United Airlines and bankrupt US Airways was made despite concern on the part of DOT that it may result in less competition between the airlines in some markets. The agency judged that the agreement could increase competition elsewhere while providing benefits for a number of travelers by permitting more integrated connecting services in markets not now served by either airline.

The carriers accepted several restrictions mandated by the Dept. of Justice that were crucial to passing review with the DOJ antitrust division. Justice barred the two from codesharing on local traffic on routes where both offer nonstop service, including hub-to-hub markets, except for services to New York LaGuardia and Boston from Washington-area airports. …

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