The Honorable John D. Rockefeller
Chairman, Committee on Commerce,
Science and Transportation
United States Senate
531 Hart Senate Office Building
Washington, DC 20510
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The Honorable Byron L. Dorgan
Chairman, Subcommittee on Aviation
Operations, Safety and Security
United States Senate
322 Hart Senate Office Building
Washington, DC 20510
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The Honorable Kay Bailey Hutchison
Ranking Member, Committee on
Commerce, Science and Transportation
United States Senate
284 Russell Senate Office Building
Washington, DC 20510
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The Honorable Jim DeMint
Ranking Member, Subcommittee on
Aviation Operations, Safety and Security
United States Senate
340 Russell Senate Office Building
Washington, DC 20510
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Dear Chairman Rockefeller, Ranking Member Hutchison, Chairman Dorgan and Ranking Member DeMint:
I am writing to ask for your support of antitrust immunity for international airline alliances. As you know, grants of immunity for international alliances – made after careful review by the Department of Transportation (DOT) – lead to more choices and lower fares for consumers, more competition among airlines, more job opportunities for airline employees, more revenue and lower costs for U.S. airlines, and more airline service to communities of all sizes in the United States.
As the DOT and numerous studies have recognized, immunized alliances have added a substantial number of new nonstop flights, providing travelers with access to new destinations and more frequent and better timed flights between communities; created more frequent and convenient connecting flights; improved the experience of travelers connecting on flights of two or more alliance partners; and lowered fares on many flights. This has increased the number of passengers flying on the alliance carriers and, in turn, contributed to the creation of approximately 15,000 U.S. airline jobs and increased aviation’s economic importance locally, regionally and nationally.
Given these significant benefits, it is not surprising that immunized airline alliances enjoy widespread public support. This is illustrated by the overwhelming support for the two immunity applications currently before the DOT (the application involving Star Alliance airlines, and the application involving oneworld Alliance airlines) and the SkyTeam immunity application, which was approved by DOT last year. The public dockets for these applications include expressions of support from elected officials, community and civic leaders from nearly every state, including:[1]
- 56 U.S. Senators
- 226 Members of Congress
- 51 Governors and Lieutenant Governors
- 151 Mayors, County Officials and other City Leaders
- 158 Airports
- 153 Chambers of Commerce/Economic Development Organizations/Visitors Bureaus
For many years, DOT has carefully reviewed applications for antitrust immunity. Applications have been approved only upon a finding that a grant of immunity would be in the public interest. In such cases, the immunity remains in effect unless DOT determines that circumstances have changed to warrant a reexamination or compliance questions arise.
The House-passed version of FAA reauthorization legislation includes language that would reverse this long-standing process and prematurely terminate antitrust immunity grants to airline alliances. The Air Transport Association strongly opposes that language, which will harm consumers, airlines (including their employees and shareholders), the travel and tourism industry, and the local, regional and national economies.
Arbitrarily terminating antitrust immunity – even temporarily – will cause significant harm. The traveling and shipping public will lose service options and see higher fares. Airlines that relied in good faith on the valid exercise of DOT authority could lose the millions of dollars they invested in developing and integrating alliance operations. Without alliances, airline employees could lose as many as 15,000 jobs. And all of this would cause a ripple effect across the economy.
For these reasons, we respectfully request your recognition of, and support for, the benefits of international airline alliances and ask that you reject, in the strongest possible terms, the approach taken in the House reauthorization bill.