NYTimes.com Article: Big Airlines Submit New Alliance Plan

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Big Airlines Submit New Alliance Plan

March 4, 2003
By THE ASSOCIATED PRESS






Filed at 8:23 a.m. ET

WASHINGTON (AP) -- Delta, Northwest and Continental
airlines are again proposing a marketing alliance that
would allow them to sell seats on each other's flights,
this time with new conditions aimed at keeping air travel
competitive, the government announced Monday.

The Nos. 3, 4 and 5 airlines struck a more defiant tone in
January, saying they would go ahead with the alliance and
ignore government restrictions that would prevent them from
dominating air travel in certain markets.

But instead of fighting, the airlines met with Department
of Transportation officials and worked out a new proposal.

``We've had some very productive discussions,'' said
Continental spokesman Rahsaan Johnson.

The public has 15 days to comment on the plan, and
Transportation Department officials said they expect to
finish reviewing it in a month.

Read C. Van DeWater, assistant secretary for aviation and
international affairs, said in the official notice that
transportation officials will monitor the airlines to make
sure they comply with the conditions.

``We continue to believe, however, that if the alliance
were implemented as originally presented to us, it would
raise serious competitive issues,'' he wrote.

The carriers had objected to three conditions: that they
give up leases on airport gates used fewer than six times a
day over two months; that they limit the total number of
flights that share codes to 2,600; and that they refrain
from making joint bids on corporate or travel agency
contracts.

Their new ``code-sharing'' plan calls for giving up leases
at hub airport gates if a carrier moves flight operations
to a gate used by one of the other two. Affected airports
would be Boston's Logan International Airport, Dallas-Fort
Worth International Airport, Cincinnati/Northern Kentucky
International Airport, LaGuardia International Airport,
Houston's George Bush Intercontinental Airport and Detroit
Metropolitan Airport.

The airlines also proposed phasing in 2,600 code-share
flights for two years and notifying transportation
officials six months before adding more. They've committed
to making code-sharing agreements in small communities not
presently served.

Finally, the airlines proposed giving travel agents and
corporations the option of dealing with each carrier
separately or receiving a joint bid for contracts. They've
also agreed not to offer joint bids in markets that one
carrier dominates.

^----

On the Net:

Department of Transportation: http://www.dot.gov


http://www.nytimes.com/aponline/business/AP-Airline-Alliance.html?ex=1047786467&ei=1&en=c8dea1cbf2472b4b



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