I can not remember if the below article was posted to the forum...just received it from a friend.....so sending it any way. Airline Alliance Refuses to Accept Official Rejection By Keith L. Alexander Wednesday, January 22, 2003; Page E01 In defiance of the federal government, three of the nation's largest airlines will launch a marketing and code-sharing alliance -- and fly into court. Delta Air Lines, Northwest and Continental said yesterday that they would begin selling tickets on one another's flights, even though the Transportation Department has said it would take legal action to stop them. The Transportation and Justice departments ruled last week that they would forbid the alliance unless the carriers accepted restrictions to alleviate concerns about anti-competitiveness. The airlines turned up their noses at the Transportation Department's conditions and said they expect to have the alliance in place by summer despite government litigation. Travelers will have more flight options as long as the alliance operates, which could be for the long term -- or something less, if courts side soon with the government. Under the arrangement, each airline's frequent fliers will be able to earn and redeem points on any of the three carriers. Finding a free ticket, however, may take some clever maneuvering. Delta has about 29 million frequent fliers, Continental about 23 million and Northwest about 19 million. Let the scramble for free seats begin. Also under the alliance, the airlines' airport lounge members will be allowed to use any of the lounges. But if you're thinking of finding easy refuge from the airport hubbub, you might think again. "These lounges are going to be overwhelmed," said Christopher J. McGinnis, editor of the Ticket, an Atlanta-based travel newsletter. "These alliances are really more pro-airline than they are pro-consumer." That is why the airlines are doing it even in the face of litigation. As long as the alliance endures, the airlines will be able to attract more travelers with expanded routes and the frequent-flier programs. In its ruling last week, the Transportation Department said the marketing agreement would be allowed if the airlines gave up all gates at airports where they have fewer than six takeoffs and landings a day. Also, the airlines would have to limit the number of flights they could sell together and they could not submit joint proposals to companies and travel agencies for new contracts. In a joint statement, the three airlines said those conditions "undermined the value" of the agreement and would cost them market share to other airlines. The carriers argued that their alliance was similar to one created by United Airlines and US Airways last year, which the Transportation Department approved. The three airlines also pointed out that Transportation's conditions were stricter than those set by the Justice Department. The carriers agreed to comply with the Justice Department restrictions. In response to the government's ruling, Delta, Northwest and Continental offered to revise their proposal. They agreed to give up 13 gates at four of their main hub airports and at Boston's Logan International Airport. The airlines also agreed to limit the number of domestic, Canadian and Caribbean code-share flights to 2,600 in the first year of the alliance but said they wanted to increase the number of flights later. They also said they would offer joint bids only to companies and travel agencies that ask for them, and that they would exclude companies headquartered in any of the cities where the three carriers operate hubs. Leo F. Mullin, Delta's chairman and chief executive, said that the airlines were "disappointed" with the government's conditions and that they look forward to resolving the disagreement in court. Challenging the administration is risky for the airlines. As the industry has racked up huge losses in the past two years, airline executives have trotted to Washington several times, hoping to convince Congress that the government should pay some of the added security costs to airlines since the terrorist attacks of Sept. 11, 2001. Also, the Transportation Department approves which airlines are permitted to add flights into government-controlled airports such as Reagan National. "The DOT is going to be unhappy, and because they are a regulatory agency they can improperly punish you in the future for things you bring before them. That's a risk you're taking," said Jeffery A. Smisek, who oversees legal and corporate affairs for Continental Airlines. "But I believe these are professional men and women and they won't do that." *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: www.pichemas.com TnT Webdirectory: http://search.co.tt *********************************************************