Protectionist Measure Would Halt Trans-Atlantic Alliances

Officials in the European Union are calling the bluff of protectionist interests in the US Congress.

The US House has passed a version of FAA reauthorization which pulls the US back from liberalized rules for marketing alliances with foreign carriers. Dow Jones reports that John Bruton, the EU's ambassador to Washington, has written to US Transportation Secretary Ray LaHood, warning that the bill would "dangerously impair" efforts to deregulate transatlantic airline service.

As ANN reported, House Transportation Chair James Oberstar, a Minnesota Democrat, added language to the FAA bill which would sunset existing antitrust immunity already granted US airlines, task the Government Accountability Office with evaluating the effects of such waivers on the marketplace, and make the DOT come up with formal requirements for airlines seeking to renew or create new alliances, both domestic and international.

DOT is currently reviewing anti-trust immunity applications which would allow American Airlines and British Airways to enter the 'oneworld' alliance, and another which seeks to allow Continental to join United and Lufthansa in the Star Alliance.

Regarding the threat of tightened rules for partnering with other carriers, Continental President Jeff Smisek told Dow Jones, "I think Congressman Oberstar is off on a mission that is detrimental to the airline industry."

FMI: www.eu.int, www.congress.gov, www.dot.gov