Quote:
Originally Posted by deceptibum
I'm a CAL guy and we join the Star Alliance on Oct 24th leaving the SkyTeam behind. I predict some merger announcement Oct 25th.
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What does the alliance have to do with a merger?
WASHINGTON, June 29 (Reuters) - The U.S. Justice Department opposes broad antitrust immunity for Continental Airlines Inc to join UAL Corp's United Airlines and other members of the Star alliance, documents showed.
In a filing late on Friday with the Transportation Department, antitrust enforcers said approval was likely to harm competition on some international routes, including flights between China and U.S. and Canadian cities.
The proposed agreements also could hurt domestic competition and raise fares on some routes, Justice Department lawyers wrote in public comments.
The DOJ also said the alliance had offered little in the way of consumer benefits.
In a statement, Continental declined to comment on specific aspects of the Justice Department's comments. It said it would address those issues in its response to be filed with the Transportation Department, which will make the determination on final approval.
'We remain confident that DOT will approve our application,' the company said. 'That action is necessary to correct the competitive imbalance that now exists and safeguard our future.'
Antitrust immunity would permit carriers to share pricing, scheduling and other information within the Star Alliance. That group includes US Airways Group Inc, Deutsche Lufthansa AG, Air Canada, Air China Ltd , Thai Airways International PCL and several other carriers.
The Transportation Department earlier this year granted provisional approval to the United and Continental application, pending review of public comments.
Continental shares were up 2.3 percent at $8.98 in afternoon trading.