Senators call for delay on Star decision

"Antitrust immunity must not harm competition"

Members of the US Senate Judiciary Committee have called for a delay in confirming anti-trust immunity to four members of the Star Alliance.

The US Department of Transportation (DoT) was due to give its verdict on the application of United Airlines, Lufthansa, Air Canada and Continental Airlines at the end of last month.

It has already given the application tentative approval.

But the senators now want the DoT to postpone its decision until after the US Justice Department and the European Commission have finished their separate inquiries into transatlantic airline competition.

The move comes days after pilots at United wrote to US President Barack Obama also calling on him to delay any anti-trust immunity for airlines.

Three senators, Democrats Patrick Leahy and Herb Kohl and Republican Orrin Hatch wrote to Eric holder, the US attorney d general and Roy LaHood, the transport secretary calling for the delay.

They said: "It remains our view the DOT should only grant antitrust immunity to airline alliances sparingly and only upon a determination that the immunity sought will not harm competition."

It calls for no decision "on any antitrust immunity application, especially the United, Continental, and Lufthansa application, until the Justice Department has had a full opportunity to submit formal comments as to the competitive effects of a specific proposal."

Along with the application from the Star alliance members, the DoT is also considering a similar request from the rival oneworld alliance members including American Airlines, BA and Iberia.

A decision on this is expected later this year.

The DoT gave tentative approval to the Star application in April.

 This was flowed by a decision by the EC to mount inquiries into both the Star and oneworld applications.  

www.staralliance.com   www.oneworld.com   www.dot.com   http://ec.europa.eu