Why is the government allowing airlines to submit secret antitrust filings?

by Charlie Leocha on December 9, 2008

One of the precepts of Washington lawmaking is the time-honored tradition of open deliberation. Unless you’re an airline.

During the past week, the Department of Transportation (DOT) has not served the American consumers well by quietly granting air carriers’ requests to file what amounted to secret answers to questions raised by various travel organizations in a controversial antitrust immunity filing.

I’m all for the give-and-take in politics. In fact, I like it. But the latest OneWorld Alliance answers to questions asked by the American Society of Travel Agents (ASTA) and the Interactive Travel Services Association (ITSA) makes my bile rise.

Essentially, all of the data and answers about the specifics of plans for this airline alliance are being kept secret from the American public.

The only people who can read the unredacted, confidential version of these answers are outside lawyers who have filed confidentiality affidavits with DOT. The media and consumers are being shut out from reading about the airlines’ plans for using their sweeping immunity against travel agents and consumers. It makes zero sense that all this extremely relevant information should be treated confidentially.

These actions by American Airlines, British Airways, Iberia, Royal Jordanian and Finnair don’t pass the smell test. If their plans can’t stand the light of public and media scrutiny, they should not be passed by the DOT.

This antitrust immunity is not the bland KLM/Northwest version that allowed codesharing and some coordination of schedules. It is aimed against consumers, suppliers and travel agents.

According to reports I have heard, the antitrust immunity for alliance agreements extends to sales, travel agent relations, vendor negotiations as well as scheduling and flight planning.

If these proposed antitrust immunity rules go into effect, consumers and travel agents will find, in effect, their choices limited to three major alliances — SkyTeam, OneWorld and Star Alliance — rather than 41 different airlines.

It is basic economics: Fewer choices are bad for consumers. Fewer competitors means less competition.

I am filing a letter requesting the confidential portions of the OneWorld Alliance response to the Department of Transportation about questions raised by ASTA and ITSA.

For your part, contact your Senator or Representative and ask them to check into these proceeding secrets that are being kept from the public and the media.

Don’t wait. Contact them this week.

Current airline alliance makeup:

SkyTeam = Aeroflot, Aeroméxico, Air France, Alitalia, China Southern Airlines, CSA Czech Airlines, Delta Air Lines, KLM Royal Dutch Airlines, Korean Air and Northwest Airlines.

OneWorld = American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines (JAL), LAN, Malév, Qantas, Royal Jordanian.

Star Alliance = Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, EgyptAir, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shanghai Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, THAI, Turkish Airlines, United, US Airways.

Share:
  • email
  • Twitter
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

Leave a Comment

Previous post:

Next post: