Wed, Jan 22, 2003
DoT To Begin Enforcement Action On Code-Sharing
Alliance
The
U.S. Department of Transportation will begin a formal enforcement
action to challenge a code-sharing arrangement proposed by Delta
Air Lines, Northwest Airlines and Continental Airlines, department
officials said Tuesday.
The DOT decision comes in response to an announcement earlier in
the day by the airlines that the three carriers intend to proceed
with their code-sharing plan without satisfying the
department’s concerns. The airlines incorrectly argue that
DoT has no right to object to the anti-competitive effects of their
proposed marketing arrangement.
"DoT will not abandon our statutory responsibility to consumers
nor ignore the clear intent of Congress, which has specifically
directed the DOT to review such matters for anti-competitive
effects," said DoT spokesman Chet Lunner. "The DOT intends
aggressively to enforce its statutory authority to challenge the
transaction and require such conditions as it deems necessary to
preserve competition."
DoT = The Law
In its official press release, the DoT says, "A
DoT enforcement proceeding includes several phases and is similar
to the adjudicatory process in many courts of law."
In this case, the Secretary of Transportation will first order
the institution of a proceeding. The DOT Deputy General Counsel
then oversees the development of the case by the Office of
Aviation Enforcement and Proceedings, which prepares and files a
complaint of unfair methods of competition in air transportation
with an administrative law judge.
The judge conducts a hearing, then makes a recommended decision
which is subject to final review by the DoT. Appeals of the final
DoT decision could be taken to the U.S. Court of Appeals.
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