Order 2002-4-4

Order 2002-4-4

U.S.- U.K. Alliance Case; American Airlines, Inc. and British Airways Plc

Order 2002-4-4
OST-2001-11029
OST-1999-6507

Issued April 4, 2002
Served April 4, 2002

Final Order

U.S.- U.K. Alliance Case/Application of American Airlines and British Airways for Statements of Authorization and Related Exemption Authority

We disagree with the argument that the decision of AA/BA to seek dismissal of their application eliminates the possibility of a U.S.-U.K. Open Skies agreement. United/bmi remain committed to the implementation of their proposed alliance, and we believe that their commitment could provide the opportunity to achieve an Open Skies agreement. In this regard, we note that the U.K.'s Transport Minister has recently stated that the United Kingdom retains the right to negotiate and conclude an Open Skies agreement with the United States subject to meeting its obligations under Community Law.

We have decided to approve and grant antitrust immunity to the proposed United/bmi Alliance Agreements and to approve United/bmi's request for blanket code-share and related exemption authority subject to the terms and conditions proposed in our showcause order, and the requirement that, within six months from the date of the issuance of this Order, the United States achieves an Open Skies agreement with the United Kingdom that meets U.S. aviation policy objectives. Our approvals and grant of immunity will not become effective until 30 days after that agreement is achieved.

By: Read Van de Water