DOT APPROVES ANTITRUST IMMUNITY FOR UNITED, BRITISH MIDLAND AIRWAYS

DOT APPROVES ANTITRUST IMMUNITY FOR UNITED, BRITISH MIDLAND AIRWAYS    The U.S. Department of Transportation granted antitrust immunity Thursday to an alliance between United Air Lines and British Midland Airways.
   The arrangement is subject to the United States’ and United Kingdom’s concluding an open-skies agreement within the next six months, DOT said.
   In the same order, DOT also granted the request of American Airlines and British Airways to dismiss their application for antitrust immunity.
   “Making the benefits of open skies available to the U.S. and U.K. consumers is a DOT priority,” Mineta said. “If we can replace the restrictive U.S.-U.K. aviation agreement with open skies, this alliance will provide competitive options for service to the United Kingdom and beyond.”
   In January, DOT tentatively approved antitrust immunity between American Airlines and British Airways, and between United and BMI. Both approvals were based on the condition that a U.S.-U.K. open skies agreement was achieved within six months.
   The DOT also required that American and BA divest themselves of take-off and landing slots between some U.S. cities and London's Heathrow Airport, a major sticking point with the airlines.
   There are no negotiations scheduled between U.S. and U.K. officials regarding 'open skies' talks, and there have been no efforts on either country's part to revive them.
   Talks fell apart in February, after American and British Airways filed a motion to dismiss their application, citing concerns over the conditions set.
   Access to Heathrow for more U.S. carriers has long been a point of contention to an open skies deal and also doomed an earlier attempt at antitrust immunity bids by American and BA.