Alaska Wants a Seat at a Table No Two U.S. Airlines Have Shared

Alaska Air Group and American Airlines announced on September 29 that Alaska wants to join the Oneworld transatlantic and transpacific joint ventures, both of which already include American. The transatlantic venture counts American, British Airways, Iberia, Aer Lingus, Level and Finnair as members, while the transpacific one pairs American with Japan Airlines. If regulators approve, it would be the first time two U.S. airlines sit inside the same international joint venture.

Alaska says it needs antitrust-immune alliances to compete as a global carrier, noting that more than 85 percent of U.S. airlines’ long-haul capacity already operates as part of a joint venture. The immunity it seeks would cover both Alaska and Hawaiian Airlines, with Seattle as an emerging international hub and Honolulu relevant because Hawaiian flies to Japan from there. Regulators in the United States, European Union, United Kingdom and Japan would all weigh in.

Experts quoted by Travel Weekly see unusual antitrust questions. Northwestern law professor James Speta expects closer scrutiny because two domestic airlines are involved, and he worries immunity could let them discuss domestic services. Consultant Bob Mann points to American’s plan to fly New York JFK to Seattle twice daily next summer and notes Delta, Seattle’s second-largest carrier, could object. Airline pilots at American might as well.

Analysts also point to factors that may help. The current administration’s relatively permissive antitrust stance could ease approval, and attorney Scott Wagner expects the Department of Transportation to attach conditions, such as keeping capacity on certain routes. Alaska says it is prepared for that. The closest precedent, the American-JetBlue Northeast Alliance, was approved and later dissolved by a court after a Justice Department challenge.

Sources: Travel Weekly