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United Air Lines, Inc. and Air Canada (Antitrust Immunity for Expanded Alliance Agreement)

Order 97-6-30 | OST-96-1434 | Issued and Served June 26, 1997

Order to Show Cause

HTML - With Appendix A

We have tentatively decided to grant approval of and antitrust immunity for the Alliance Agreement between United and Air Canada. We have, however, tentatively found it appropriate to condition our approval and to require supplemental information as more fully explained below. We propose to exclude from our approval and grant of antitrust immunity in this proceeding cooperative arrangements involving all-cargo services and cooperative arrangements involving service to third countries.

Appendix A – Conditions Governing the Antitrust Immunity

By: Charles Hunnicutt

United Air Lines, Inc. and Air Canada (Approval of Antitrust Immunity)

OST-96-1434 | July 8, 1997

Joint Response to Order 97-6-30

HTML | Star Alliance - A Brief History

As can be seen from the texts of the Star Alliance documents, the Star Alliance is not intended to play any direct role in the United/Air Canada alliance relating to corporate strategy, yield and capacity management, and pricing of transborder services, which are the focus of the United/Air Canada alliance itself. United's and Air Canada's decisions as to these matters, insofar as they relate to transborder services and to the extent they are not made by United or Air Canada acting independently, will be undertaken solely by United and Air Canada pursuant to the terms of their Alliance Expansion Agreement. Other Star Alliance members will not be involved in such decision making. There is no intention to integrate the members of the Star Alliance into a single corporate entity, or for the Star Alliance agreement to replace the United/Air Canada alliance agreements or any of the other bilateral or multilateral alliance agreements to which United is a party and which have been reviewed by the Department in conjunction with its granting United authority to code share and, in some cases, to cooperate under antitrust immunity with various carriers. Each member carrier of the Star Alliance will maintain its own separate corporate identity and will carry out its own corporate strategy.

• Attach 1 – Press Release
• Attach 2 – Introducing a Very, Very, Very, Very Good Idea (Public Brochure)
• Attach 3 – Alliance Lounges: Locations and Access (Employee Brochure)
• Attach 4 – Star Alliance: Products and Services (Employee Brochure)
• Attach 5 – Star Alliance: Introducing the Future of Global Air Travel (Employee Brochure)
• Attach 6 – United Airlines Friendly Skies (Premier Edition, June 1997)
• Attach 7 – United Airlines Friendly Skies (Premier Worldwide Edition, June 1997)
• Attach 8 – Air Canada Aeroplan (Sample Mailing Piece, May 14, 1997)
• Attach 9 – Air Canada Aeroplan World (July/August 1997)
• Attach 10 – Access to Maple Leaf Lounges by Star Alliance Customers (Employee Communication)

Joint Motion for Confidential Treatment

The documents for which confidential treatment is requested are listed below:

• (1) Memorandum of Intent Regarding Elements for a Multilateral Alliance, dated May 14, 1997.
• (2) The Star Alliance License Agreement, dated as of November 1, 1996.
• (3) Mutual Non-Disclosure and Confidentiality Agreement, dated as of October 1, 1996.
• (4) Supplement No. 1 to Alliance Agreement (June 1997 draft).
• (5) Star Alliance Customer Relations MCO Goodwill Compensation (draft).

Service List

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130 / Air Canada and Galland Kharasch, Anita Mosner, 202-342-5200

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