Air TransportSkyTeam To Take Advantage of EU/U.S. Open SkiesAviation Week & Space Technology04/16/2007, page 50
Jens FlottauFrankfurt
SkyTeams gears up for open skies opportunity
Printed headline: ATI Flies
The SkyTeam alliance plans to apply for transatlantic anti-trust immunity (ATI) within the next few months, hoping it can take advantage of the expected open skies regulatory regime between the European Union and the U.S.
"Thanks to the EU/U.S. agreement, we will be able to demonstrate the customer benefits of ATI," Air France's Vice President Alliances and International Affairs Dominique Patry said at a SkyTeam event in Frankfurt. He expects the approval process to be completed by the end of this year or early 2008, just in time for the implementation of open skies slated for March 2008.
Air France-KLM, Northwest and Delta, the core SkyTeam members, plan to put in place a revenue-sharing joint-venture for transatlantic routes that could be joined later by Alitalia and CSA Czech Airlines. "Continental is not part of the scope," Patry said. SkyTeam pulled back their original ATI application because the U.S. Dept. of Justice said at the time that it was unable to "consider it positively." But now, with open skies seemingly a done deal and the U.S. airline landscape somewhat more settled than two years ago, the alliance wants to give it another try. A key issue will be whether Justice is comfortable with Delta and Northwest being part of a transatlantic joint venture while simultaneously competing in the domestic U.S. market.
Aeroflot's Commercial Director Alexey Sidorov said that the airline's bid for alliance partner Alitalia was the result of an "unexpected situation" as Aeroflot was invited by Unicredit bank to participate. Sidorov stressed that Aeroflot and Alitalia already have a tight relationship, and they currently code-share on several routes. Also, he hinted that Aeroflot has recent experience in restructuring, but he declined to give out details.
Air France's Patry said, "We are not prepared to join the bid under the present conditions" of the Italian government sticking to its statement that Alitalia needs to "restructure first." Patry did not rule out a future entry into the process if conditions change.
Preliminary bids for Alitalia are due for submission on Apr. 16. Three groups so far have expressed interest.
Jens FlottauFrankfurt
SkyTeams gears up for open skies opportunity
Printed headline: ATI Flies
The SkyTeam alliance plans to apply for transatlantic anti-trust immunity (ATI) within the next few months, hoping it can take advantage of the expected open skies regulatory regime between the European Union and the U.S.
"Thanks to the EU/U.S. agreement, we will be able to demonstrate the customer benefits of ATI," Air France's Vice President Alliances and International Affairs Dominique Patry said at a SkyTeam event in Frankfurt. He expects the approval process to be completed by the end of this year or early 2008, just in time for the implementation of open skies slated for March 2008.
Air France-KLM, Northwest and Delta, the core SkyTeam members, plan to put in place a revenue-sharing joint-venture for transatlantic routes that could be joined later by Alitalia and CSA Czech Airlines. "Continental is not part of the scope," Patry said. SkyTeam pulled back their original ATI application because the U.S. Dept. of Justice said at the time that it was unable to "consider it positively." But now, with open skies seemingly a done deal and the U.S. airline landscape somewhat more settled than two years ago, the alliance wants to give it another try. A key issue will be whether Justice is comfortable with Delta and Northwest being part of a transatlantic joint venture while simultaneously competing in the domestic U.S. market.
Aeroflot's Commercial Director Alexey Sidorov said that the airline's bid for alliance partner Alitalia was the result of an "unexpected situation" as Aeroflot was invited by Unicredit bank to participate. Sidorov stressed that Aeroflot and Alitalia already have a tight relationship, and they currently code-share on several routes. Also, he hinted that Aeroflot has recent experience in restructuring, but he declined to give out details.
Air France's Patry said, "We are not prepared to join the bid under the present conditions" of the Italian government sticking to its statement that Alitalia needs to "restructure first." Patry did not rule out a future entry into the process if conditions change.
Preliminary bids for Alitalia are due for submission on Apr. 16. Three groups so far have expressed interest.
