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Wed, Apr 02, 2003

Huge New Airline Alliance Shapes Up

FAA Says Yes To Joint Operations

Delta Air Lines, Northwest Airlines and Continental Airlines won approval Tuesday for the biggest-ever US air carrier alliance as the government accepted changes to a plan proposed last year.

The three carriers, which together control a third of domestic flights, agreed to give more airport gates to competitors, restrict how they market the alliance to companies and limit the number of each other's flights on which they will sell tickets.

"These restrictions on their behavior should adequately reduce the possibility of anti-competitive behavior," Read Van de Water, a Department of Transportation assistant secretary, wrote in the agency decision.

The alliance can begin immediately, said department spokesman, Bill Mosley. Spokesmen for the three airlines did not immediately return calls for comment.

FMI: www.air-transport.org

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