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Some routes not covered by antitrust immunity

Fri Jul 10, 2009 4:46 PM EDT
business, us, continental, continental-airlines, carve-outs
The Associated Press, HOPD
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— Federal regulators granted Continental Airlines Inc. immunity from antitrust laws to work with nine other airlines — letting them act as a single carrier on international service.

But the regulators carved out several routes where the airlines must continue to compete separately, saying there wasn't enough competition from outside carriers. Those routes are:

— New York and Copenhagen

— New York and Geneva

— New York and Lisbon

— New York and Stockholm

— New York and Ottawa

— Cleveland and Toronto

— Houston and Toronto

— Houston and Calgary

— All U.S. cities and Beijing

The Transportation Department said it could lift the carve-outs — letting Continental and other airlines act together on setting prices and schedules — if new competition arises in any of those markets.

The agency also said Continental and Star Alliance members United Airlines, Lufthansa and Air Canada must continue to compete separately on Chicago-Toronto and San Francisco-Toronto service.

The Transportation Department rejected a proposal to force the Star Alliance members to compete against each other on service between the United States and Hong Kong. The agency said it would be easy for other airlines to start service to Hong Kong.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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