The Senate Judiciary Committee is again urging the U.S. Transportation Dept. to pay more attention to the Justice Dept. in airline antitrust immunity applications, and also cautioned DOT to scrutinize the proposed oneworld ATI deal very closely before taking action.

In a letter to DOT and DOJ, Judiciary Committee members said DOT should not act on the oneworld ATI application until DOJ has had an opportunity to assess its effects. DOT should also “pay substantial heed” to the DOJ findings. The letter was signed by Judiciary’s antitrust and competition policy subcommittee Chair Herb Kohl (D-Wis.), as well as Ranking Member Orrin Hatch (R-Utah).

The lawmakers were careful to stress they are “not expressing any views on the ultimate merits” of the oneworld application. However, they also said that “it remains our view that the DOT should only grant antitrust immunity sparingly and only upon determination that [it] will not harm competition.” The letter notes that the oneworld proposal “raises significant competition issues,” and that DOT should “act cautiously.”

Similar concerns were raised by the subcommittee in June, when DOT was considering a Star alliance ATI request. There was friction between DOT and DOJ in that proceeding, as DOJ felt DOT had not given enough weight to its recommendations. DOT has the final authority in airline ATI cases, with input from DOJ.

Kohl and Hatch hinted they will be examining the DOT/DOJ relationship in airline ATI and merger applications, and may take further action. They said they will specifically look at “whether DOT is the appropriate agency” to have final authority in airline ATI cases, “or whether legislation should be drafted to give greater authority” to DOJ.

Photo: Kevin Connors