BulletProofBlog the blog on crisis communications

Continental Airlines announced on April 7, 2009 that federal regulators have tentatively awarded the company exemption from antitrust laws, permitting it to join the Star Alliance. The alliance, comprised of United Airlines, US Airways, Air Canada, a Lufthansa, among others, allows airlines to cooperate on scheduling and revenue sharing.

The Transportation Department says the alliance would "be in the public interest because it would give customers more travel options and reduce fares." But U.S. Rep. James Oberstar (D-Minn.), Chairman of the House Transportation Committee, and some airline labor unions argue against the exemption because they fear the alliance reduces competition.

Continental' s next steps are therefore essential for success in addressing customer and employee concerns. The company already has a superior record for effectively communicating passenger-friendly initiatives. Last year' s recession-sensitive program, allowing customers to buy discounted tickets now and pay later, could offer a foretaste of how Continental will support the Star Alliance.

The airline will need to redirect the focus away from how it would benefit from the alliance and toward how customers would benefit. A transparent business plan is the evidence needed for Continental to prove its position in the Court of Public Opinion, but the devil is in the proverbial details as arbiters like Rep. Oberstar need to be persuaded that the Star Alliance will result in lower prices for passengers.

Antitrust enforcement is uniquely affected by public perception. Regulators have great latitude to act in direct response to what they subjectively believe to be corporate good citizenship and public interest. As a result, regulators bald-facedly form their opinions on the basis of what they see in the media.

The race between a company and its competitors then becomes a sprint to the press conference, blogs, and opinion leaders. Whoever gets there first defines the topography of the upcoming battlefield.