Airports Lobby for the Proposed AA/BA Airline Alliance ...

... in yet another example of how the industry is changing, and is indeed global. At a time when politicians are talking more and more of protectionism, this has to be a positive step. And it would seem that a nod of approval from the U.S. DOT on the AA/BA alliance will be as well. This week, representatives from DFW, Manchester (U.K.), BWI, and Ft. Wayne International held a press conference in Washington, D.C. at the National Press Club to highlight their support for the alliance, under the auspices of the newly formed Airports Coalition for Alliance Benefits (ACAB). The ACAB is made up of some 75 U.S. and European airports. Following the press conference, the ACAB reps headed over to DOT headquarters to formally submit their comments, which supports the approval of transatlantic antitrust immunity for the oneworld global airline alliance partners American Airlines and British Airways, along with Finnair, Iberia, and Royal Jordanian Airlines (RJ). Interestingly, a lead story in the airline biz today is that Delta and Air France-KLM have inked a deal to combine two separate joint venture agreements into one to create a more integrated trans-Atlantic alliance that they say will generate $12 billion in annual revenue, according to AP reports. The airlines say they will share costs and revenues, coordinate branding at airports, and jointly pursue global advertising. In essence, it’s a consolidation of old agreements – Delta had a previous agreement with Air France; Northwest had one with KLM. Perhaps the stats that stand out the most in the Delta/Air France-KLM deal: the joint venture represents some 25 percent of total trans-Atlantic capacity; and, the agreement means the carriers will operate more than 200 daily flights and offer about 50,000 seats per day. Back to the AA/BA proposed alliance, ACAB says that the DOT approval “levels the playing field†– the Star and SkyTeam alliances already enjoy trans-Atlantic antitrust immunity. ACAB also maintains that the new alliance “will generate new economic activity through new routes and new connections. The resulting economic impact for communities worldwide is critical at this time of great uncertainty.†Ironically, one of the biggest opponents of the new alliance is Virgin Atlantic president Richard Branson, who has stated that the AA/BA agreement would be “absolutely disastrous†for competitors. He reportedly sees it more as a merger of the carriers, which they deny. This from the man who perhaps more than any other has become the face of airline globalization. Go figure. Thanks for reading. jfi