BA Hasn't Yet Submitted Added Information To US Transport Dept
03 March 2009 - 10:54PM
Dow Jones News
British Airways plc (BAY.LN) hasn't yet submitted further
information to the U.S. Department of Transportation regarding its
U.S. antitrust immunity, or ATI, application.
The U.S. regulator requested further information Dec. 19 from
BA, AMR Corp's (AMR) American Airlines and Spain's Iberia Lineas
Aereas de Espana SA (IBLA.MC) about their potential tie-up,
including queries as to any potential capacity and pricing
decisions they may adopt.
The antitrust immunity status would bypass monopoly laws in the
U.S., allowing BA, American and Iberia to work together on
scheduling and pricing. The planned tie-up would also be a revenue
sharing deal.
A spokesman for British Airways told Dow Jones Newswires
Tuesday, "The Department of Transportation has set no timetable for
us to provide the additional information it has requested. The DOT
request for information requires very detailed answers and we want
to respond to the issues raised as fully as possible.
"Once the work is completed, we will submit all the relevant
information."
Given that the joint applicants are requesting global immunity,
the DOT required further information on worldwide plans and
operations, including the alliance's plans and operations in the
Pacific, Australian and Latin American markets.
In addition, the DOT called for additional detail about hub
rationalization and code-sharing, as well as how a joint business
agreement would affect corporate and travel agency
relationships.
Company Web site: www.britishairway.com
www.aa.com
www.iberia.com
-By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299;
kaveri.niththyananthan@dowjones.com