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US: Gov toughens stance on global airline partnerships says WSJ

By  |  December 18, 2016

US officials are stepping up scrutiny of partnerships between American and foreign airlines, a shift that could help smaller carriers that say such alliances hurt their ability to compete in an increasingly consolidated industry reports the Wall Street Journal.

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    The Transportation Department on Wednesday affirmed a decision to impose stiff conditions on a partnership proposed by Delta Air Lines and Aerovias de Mexico, or Aeromexico, that nation’s No. 1 carrier. Last month the department denied an application for antitrust immunity from American Airlines Group and Qantas Airways.

    That marked a shift from more than two decades of favorable decisions for airlines sharing pricing, schedules and revenue with foreign partners. A Transportation Department spokeswoman said the agency must consider competition and whether such proposals create substantial public benefits.

    Full Content: Wall Street Journal

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