U.S. extends review of three-way air codeshare plan

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U.S. extends review of three-way air codeshare plan  =

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Thursday December 19, 12:56 PM EST =


(Adds details of plan, airline comment)

WASHINGTON, Dec 19 (Reuters) - The Bush administration on Thursday extend=
ed its review of a proposed code-share alliance between Delta, Continenta=
l and Northwest airlines, citing concerns about the impact on competition=
=2E

The Transportation Department said in a regulatory filing that smaller ca=
rriers and the attorney generals of several states, including Iowa and Co=
nnecticut, had requested it again delay making a decision on the plan.

"While we have not made any final decision, we have advised the three air=
lines that we believe the agreements as presented to us raise competitive=
 issues," said Read Van de Water, the assistant transportation secretary =
for aviation. "We have discussed our concerns in detail with the three ai=
rlines."

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The department did not detail the objections against the plan, but indust=
ry consultants have said the agreement between Delta Air Lines (DAL), Con=
tinental Airlines (CAL) and Northwest Airlines (NWAC) would hurt smaller =
airlines.

Codesharing allows airlines to tie together their frequent flier programs=
, ticketing and route networks to expand their businesses and make it eas=
ier for travelers to book tickets on more than one carrier.

The three-way proposal was in response to a similar alliance reached by n=
ow bankrupt rivals United Airlines (UAL) and US Airways (UAWGQ). Regulato=
rs approved that deal.

A senior Transportation Department official also said the government has =
received complaints that Delta, Continental, and Northwest recently engag=
ed in "anti-competitive conduct." He gave no explanation of the alleged c=
onduct.

The extension to Jan. 20, 2003, is the fourth since the proposal was subm=
itted for review in August. The deal does not require approval from regul=
ators, but the department can decide to seek to block the proposal from t=
aking effect.

The Transportation Department could make a decision in January or issue a=
nother 30-day extension, which would be the last one permitted. =



=A92002 Reuters Limited. =


Roger
EWROPS

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