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 Order 2012-6-21 - Corrected Copy

Served: June 27, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

 Issued by the Department of Transportation

on the 25th Day of June, 2012

Joint Application of 

AIR CANADA,

THE AUSTRIAN GROUP,

BRITISH MIDLAND AIRWAYS LIMITED,

CONTINENTAL AIRLINES, INC.,

DEUTSCHE LUFTHANSA AG,

POLSKIE LINIE LOTNICZE LOT S.A.,

SCANDINAVIAN AIRLINES SYSTEM,

SWISS INTERNATIONAL AIRLINES LTD.,

TAP AIR PORTUGAL, and

UNITED AIR LINES, INC.

to amend Order 2007-2-16 under 49 U.S.C. §§ 41308 

and 41309 so as to approve and confer antitrust 

immunity

Docket DOT-OST-2008-0234

Joint Application of 

THE AUSTRIAN GROUP

BRITISH MIDLAND AIRWAYS LIMITED

DEUTSCHE LUFTHANSA AG

POLSKIE LINIE LOTNICZE LOT S.A.

SCANDINAVIAN AIRLINES SYSTEM

SWISS INTERNATIONAL AIR LINES LTD.

TAP AIR PORTUGAL

and

UNITED AIR LINES, INC.

under 49 U.S.C. §§ 41308 and 41309 for approval of 

and antitrust immunity for Alliance Expansion 

Agreements and an Amended Coordination Agreement

Docket OST-2005-22922

U.S.-U.K. Alliance Case Docket OST-2001-11029

ORDER TERMINATING ANTITRUST IMMUNITY

Until recently, British Midland Airways Limited (“BD”) participated in an immunized alliance 

with Star Alliance members United, Lufthansa, Austrian, Brussels Airlines, Swiss, SAS, LOT, 
2

and TAP.1 BD’s antitrust immunity became effective in 2008.2 In 2009, Lufthansa acquired 

BD, but then, in 2011, decided to sell the unit to the International Airlines Group, which owns

“oneworld” alliance members British Airways and Iberia.

On April 19, 2012, Lufthansa filed a notice in the docket regarding BD’s status.3 Lufthansa 

states that its sale of BD has closed, and as a consequence, 

...BD’s participation in all alliance agreements with the Immunized Carriers as well as its 

participation in the Transatlantic Joint Venture Agreement among Air Canada, 

Continental Airlines, United Air Lines, and Lufthansa terminates effective April 19, 

2012. Accordingly, effective April 19, 2012, the Immunized Carriers relinquish antitrust 

immunity with respect to BD....

Based upon this information, it is clear that BD no longer participates in the immunized alliance. 

The Department will, therefore, terminate BD’s grant of antitrust immunity as a matter of record. 

We are placing copies of this order in all related dockets and we will serve interested parties.

ACCORDINGLY:

1. We terminate the antitrust immunity held by British Midland Airways Limited:

a. By striking Ordering Paragraph 1 of Order 2009-7-10, as amended by Order 

2011-11-16, and replacing it with the following text, including the footnote (new 

text is shown in bold underline; deleted text is shown as stricken):

We approve and grant antitrust immunity to the Alliance Agreements 

between and among Air Canada, The Austrian Group, British Midland 

Airways, Ltd., Brussels Airlines NV/SA, Continental Airlines, Inc., 

Deutsche Lufthansa AG, Polskie Linie Lotnicze LOT S.A., Scandinavian 

Airlines System, Swiss International Air Lines Ltd., TAP Air Portugal, 

and United Air Lines, Inc., and the majority-owned affiliates of the 

aforementioned carriers, in so far as such agreements relate to foreign air 

transportation;4

 1 See, e.g., Order 2011-11-16 (Nov. 16, 2011), Docket DOT-OST-2008-0234. 

2 See Order 2007-9-12 (Sept. 12, 2007) (making BD’s antitrust immunity effective on Mar. 30, 2008), 

Docket DOT-OST-11029.

3 Letter from Arthur J. Molins, General Counsel of Lufthansa German Airlines North America, to Todd 

M. Homan, Director of DOT’s Office of Aviation Analysis, dated April 19, 2012, filed in Docket DOTOST-2008-0234 on April 23, 2012.

4 Alliance Agreements shall mean those agreements referred to on page 2, Footnote 2, and Exhibit JA-1, 

of the Joint Application filed on July 23, 2008, as well as those agreements referred to in Exhibit JM-1 of 

the Joint Motion filed on April 21, 2011. Effective immediately, the Department considers the term 

“Joint Applicants,” as used in the orders in Docket DOT-OST-2008-0234 to apply to all carriers with 

effective grants of antitrust immunity.include Brussels Airlines. 
3

b. By striking Ordering Paragraph 11 of Order 2009-7-10, as amended by Order 

2011-11-16, and replacing it with the following text (deleted text is shown as 

stricken):

We direct Air Canada, The Austrian Group, British Midland Airways, Ltd., 

Brussels Airlines NV/SA, Continental Airlines, Inc., Deutsche Lufthansa AG, 

Polskie Linie Lotnicze LOT S.A., Scandinavian Airlines System, Swiss 

International Air Lines Ltd., TAP Air Portugal, and United Air Lines, Inc. to 

withdraw, or to remain withdrawn, from participation in any International Air

Transport Association tariff coordination activities that discuss any proposed 

through fares, rates, or charges applicable between the United States and any 

countries whose airlines have been or are subsequently granted antitrust 

immunity, or renewal thereof, to participate in similar alliance activities with a 

U.S. airline(s);

c. By striking Ordering Paragraph 13 of Order 2009-7-10, as amended by Order 

2011-11-16, and replacing it with the following text, including the footnote 

(deleted text is shown as stricken):

We direct Air Canada, Austrian, British Midland Airways, Ltd., Brussels 

Airlines NV/SA, Deutsche Lufthansa, Polskie Linie Lotnicze LOT, 

Scandinavian Airlines System, Swiss, and TAP Air Portugal to continue to 

report full-itinerary Origin-Destination Survey of Airline Passenger 

Traffic for all passenger itineraries that include a U.S. point;5

This termination shall apply to all previous grants of antitrust immunity made to 

British Midland Airways Limited in Dockets DOT-OST-2001-11029,6 DOT-OST2005-22922, and DOT-OST-2008-0234.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

and International Affairs

An electronic version of this document is available at: http://www.regulations.gov

 5 We treat the foreign airlines’ O&D data as confidential, do not allow U.S. airlines any access to the 

data, and do not allow foreign airlines any access to U.S. airline O&D Survey data. We use these data 

only for internal analytical purposes.

6 BD initially made its request for antitrust immunity in Docket DOT-OST-2001-10575. However, the

Department consolidated that request with another matter into Docket DOT-OST-2001-11029, in which 

the request was ultimately granted.