International Air Transportation & Public Policy Discussion

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International Air Transportation and Public Policy Discussion
Airline alliances are two or more airlines that have an agreement, establishing shared resources, coordinated flight schedules, and a range of acceptable airfares to benefit the passengers and also maintain healthy airline competition. This alliance helps regulate the services and fees to prevent any kind of monopoly between airline companies. Antitrust laws were made to ensure that dominant companies do not use unfair tactics that will undermine their competition. It will also help protect keep the quality of the services offered in top shape, using the check and balance that is being implemented with the presence of other competitors. For the passengers and customers, these laws and alliances offer a cheaper alternative and a more convenient way of travelling. It is also a good marketing strategy because it promotes the continuous patronage of passengers to those airlines under the same alliances, with the routes, promos, prices, etc. Although the airline alliances and antitrust laws have many benefits, especially in the maintenance of their marketplace economics, it is also seen as bothersome and restraining for successful companies because of reduced profit and the need for strict compliance.
Those airlines with antitrust immunity are those who are included and participate in the airline alliances. This immunity gives the airline included in the alliance the right to declare their fares within the group. It helps reduce the competition and also increase airline partnership. Both the United States Department of Transportation and the European Union have granted immunity on specific airlines to be a...