By Putting Consumers First, OneWorld Wins an Antitrust Exemption

Authored By: Richard Levick
February 17, 2010

This week’s news that the U.S. Department of Transportation (DOT) will allow American Airlines and British Airways to “more closely coordinate international operations in transatlantic markets” among themselves and other carriers demonstrates that the correlation between Main Street opinion and Beltway deliberation is as strong as ever when it comes to competition issues.

Even in this era of economic hardship and stepped up antitrust enforcement, we now have a clear indication that companies seeking to consolidate their efforts via joint business agreements (JBAs) can still do so if they effectively articulate that the deal is a win-win for both themselves and the consumers they serve.

As I wrote in a column published yesterday on TheStreet.com, the highest criterion for antitrust immunity approval remains what is best for the American people in terms of pricing and availability of goods and services. One look at the DOT’s comments surrounding the Oneworld airline alliance (which brings together American Airlines, British Airways, Iberia Airlines, Finnair, and Royal Jordanian Airlines among others in the third largest airline alliance behind Star and SkyTeam) confirms that hypothesis.

In an official statement, the DOT stated that it “tentatively found that granting antitrust immunity to the Oneworld alliance would provide travelers and shippers with a variety of benefits, including lower fares on more routes, increased services, better schedules and reduced travel and connection times.” Furthermore, the DOT stated that Oneworld would actually enhance competition by introducing a third player onto a stage currently dominated by the Star and SkyTeam alliances.

A Oneworld spokesman likely couldn’t have said it better.

While unofficial mergers of this sort may be fast becoming recognized as a necessity for the embattled airline industry and OneWorld is still awaiting European Union approval of the deal, this case serves as a bellwether for other companies – or entire industries – whose futures hinge on how antitrust regulators perceive corporate consolidation plans and pursue anti-competition cases.

The lesson: Effectively demonstrate how your business interests align with those of the public and regulators can become an ally rather than a hurdle to be cleared.

Richard S. Levick, Esq. is President and CEO of Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog. Connect with him @richardlevick.

***See Richard Levick give a special address on “Managing the Antitrust Crisis: Communications Strategies” at the CLE International’s Antitrust Conference on March 25, 2010 in Los Angeles, CA. Also presenting at this event will be Federal Trade Commissioner J. Thomas Rosch and Levick Senior Vice President Michael Robinson.

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