The Clinton administration has vowed to put recently proposed strategic alliances between US airlines under the microscope.
Patrick Murphy, a senior US Department of Transportation (DoT) official, told a Congressional hearing that planned pacts between Northwest/Continental, American/US Airways and United/Delta "-represent nothing less than a major transformation of the industry".
Murphy says that the DoT and the US Department of Justice (DoJ) have "-the tools and the willingness to investigate whether such transactions would lead to a significant loss of competition and, if necessary, to prevent such harm".
He says the potential size and scope of the proposed alliances requires close scrutiny, and the US carriers involved have been asked to provide the DoT and DoJ with details about their plans (Flight International, 6-12 May) .
Charles Hunnicutt, another top-level DoT official, told Congress: "Our focus on the impact of large domestic alliances on other major airlines will be on whether competition will decrease or be eliminated. We will consider the potential impact of these alliances on the competitive capabilities of other major airlines, of new entrants and of regional carriers."
Source: Flight International
