Sat, Oct 09, 2010
Carriers Already Have Antitrust Immunity From The U.S. DOT
Air Canada and United Continental
Holdings, Inc. have concluded a Memorandum of Understanding setting
out the principles for a comprehensive revenue-sharing joint
venture that would provide for an enhanced partnership on United
States-Canada transborder flights, and generate substantial service
and pricing benefits for consumers traveling between the two
countries. On October 1, 2010, United Continental Holdings, Inc.
announced the closing of the merger of United Air Lines and
Continental Airlines, combining the carriers' global networks to
create the world's leading airline which will operate under the
name United Airlines.
"Working cooperatively with our partner Air Canada, we can
create a more streamlined travel experience for customers traveling
between the United States and Canada, providing more travel options
and benefits while reducing travel times," Jeff Smisek, United
Airlines President and Chief Executive Officer, said Thursday.
"This joint venture between United Airlines and Air Canada will
provide many benefits and revenue synergies on this important
market allowing us to compete more effectively," added Calin
Rovinescu, Air Canada's President and Chief Executive Officer. "As
founding members of Star Alliance, Air Canada and United have
benefited from a close relationship, as have our customers through
a simplified travel experience and loyalty rewards. By managing
pricing, scheduling and sales through a stronger joint venture, the
carriers will be better able to serve customers by offering more
travel options."
The Canada-U.S. market is one of the largest air
transportation markets in the world. The airlines say that
Air Canada's transborder network to 59 U.S. cities will be
strengthened by United's presence in 210 U.S. airports, and
United's transborder network to 16 Canadian cities will be
strengthened by Air Canada's network serving 59 communities across
Canada.
The joint venture is expected to come into effect in early 2011,
subject to Air Canada and United Airlines making the necessary
filings, obtaining regulatory approvals and finalizing
documentation. The carriers already benefit from anti-trust
immunity granted by the U.S. DOT.
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