New snag for Continental antitrust-immunity bid
DALLAS (AP) -- Continental Airlines' bid to work closely with United Airlines and others on trans-Atlantic service has hit a new snag, with the Justice Department seeking to review the plan.
The Transportation Department gave preliminary approval in April to Continental's request for antitrust immunity so it could coordinate prices and schedules with United.
But on Wednesday, Attorney General Eric Holder indicated his department wants a say in the matter.
"We have reached out to the Department of Transportation," Holder said. "I've had conversations with (Transportation Secretary Ray LaHood), and they have said they will work with us in making a determination in how this particular alliance should be viewed."
Holder made the comment during a Senate Judiciary Committee hearing.
Sen. John Cornyn, a Republican from Texas, where Continental is based, told Holder he was concerned that a May 31 deadline from reviewing the antitrust-immunity bid had passed with no decision.
"We did ask the Transportation Department to allow our antitrust division to have some input," Holder said. He added that the issue should be settled in a matter of weeks.
Continental predicted it will win immunity.
Mary Clark, a spokeswoman for the Houston-based airline, said it was not unusual for the Transportation Department to discuss antitrust reviews with the Justice Department.
"We are pleased to hear the approval process is apparently coming to a close and remain confident the DOT will approve the application so we can begin bringing its benefits to consumers," she said.
Continental announced last year it would leave one alliance of global airlines and join another -- jumping from Delta Air Lines Inc.'s team to United's Star Alliance -- and seek to be included under Star's antitrust exemption.
