The U.S. Department of Transportation on Friday granted final approval for Continental Airlines Inc. to participate in a new joint venture with members of the Star Alliance group of carriers. The move came two weeks after the Justice Department blasted the plan as being harmful to consumers and competition.
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The Transportation Department on Friday granted Continental Airlines Inc. immunity from antitrust laws, allowing it to work closely with a group of other carriers, including United Airlines, on international service.
The decision pushed aside some objections raised by the Justice Department, which said the airlines' cooperation on pricing and services would lead to higher fares and less competition.
With the decision, Continental can join the Star Alliance of airlines, which is already shielded from U.S. antitrust laws. The Transportation Department also approved a joint venture between Continental and Star members United, Lufthansa and Air Canada for trans-Atlantic service.
But in a nod to the Justice Department's objections, the Transportation Department ruled that the immunity won't apply to several international routes where Continental and its new partners are already strong.
full article here
article here
The Transportation Department on Friday granted Continental Airlines Inc. immunity from antitrust laws, allowing it to work closely with a group of other carriers, including United Airlines, on international service.
The decision pushed aside some objections raised by the Justice Department, which said the airlines' cooperation on pricing and services would lead to higher fares and less competition.
With the decision, Continental can join the Star Alliance of airlines, which is already shielded from U.S. antitrust laws. The Transportation Department also approved a joint venture between Continental and Star members United, Lufthansa and Air Canada for trans-Atlantic service.
But in a nod to the Justice Department's objections, the Transportation Department ruled that the immunity won't apply to several international routes where Continental and its new partners are already strong.
full article here
