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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.

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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