THE US DEPARTMENT of Transportation (DoT) has tentatively decided to grant American Airlines and Canadian Airlines International immunity from US anti-trust laws, to allow them to co-ordinate air services.
The Administration of US President Bill Clinton, however, has placed some restrictions on the immunity, which is valid for five years.
In line with an agreement between the two carriers and the US Department of Justice, the DoT will limit approval and immunity in the New York-Toronto market until 24 February, 1998, when all bilateral restrictions for flights to Toronto from US points are lifted.
The DoT has also withheld approval and immunity from all-cargo and third-country services. The Department will finalise its show-cause order after any protests are considered.
Immunity from US anti-trust laws has been granted to US carrier United Airlines and German flag carrier Lufthansa, while similar action is pending for a marketing pact involving another US carrier, Delta Air Lines, Swissair, Belgian flag carrier Sabena and Austrian Airlines.
Source: Flight International
