In a move that might bode well for future cheap airplane tickets and cheap vacation packages, the DOT (Department of Transportation) has granted antitrust immunity to American Airlines and a group of foreign airlines that will allow the airlines to jointly set airfares and schedules on flights across the Atlantic. DOT said that its decision would result in lower prices in some markets, improved service, and better schedules.
In July European regulators approved antitrust immunity for the airlines involved in this new alliance.
The other airlines included in this alliance are British Airways, Iberia Airlines, Finnair and Royal Jordanian Airlines.
Other major alliances, Star Alliance (which includes United, Continental, Lufthansa and All Nippon) and SkyTeam (which includes Delta and Air France), have previously been granted similar immunity.
Americans new alliance has been 14 years in the making, but regulators have previously opposed closer cooperation between American and British Airways.
American noted that this antitrust immunity will strengthen their route network, increase revenue, and allow them to more effectively compete against other airline alliances having immunity, including ones with Delta, Continental, and United.
American is working to get antitrust immunity for a similar partnership with Japan Airlines on routes across the Pacific, claiming that such a partnership would generate extra sales and cost savings of $500 million annually within a couple of years after antitrust approval.
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