Oneworld partners granted immunity to form global alliance

american-airlinesThe U.S. Department of Transportation (DOT) gave its tentative approval to grant antitrust immunity to oneworld partners to form a global alliance. The airlines - American Airlines, British Airways, Iberia Airlines, Finnair, and Royal Jordanian Airlines - filed for alliance in an effort to build a flight system that would allow international operations in global markets.

According to an American Airlines press statement, the benefits of the oneworld alliance would be cheap flights on more routes, increased services, better schedules and reduced travel and connection times.

However, the pending alliance didn't sit well with other airlines. Sir Richard Branson of the Virgin Group has been vocal in his disagreement of this global alliance, saying it would harm harm the healthy competition airlines need to create a fair marketplace for consumers.

Reuters news service says BA, Iberia and American Airlines have offered to modify their plans and review their slots at London Heathrow Airport in an effort to share more of their transatlantic routes and settle a competition dispute.

Interested parties have 45 days to object and answers to objections will take a further 15 days.