Aer Lingus will have some runway to expand its transatlantic operations to the US. In addition, airlines get to retain some more pricing power since they are not competing against each other and are, instead, working together.
#JAY ABRAHAM, JOINT VENTURE AGREEMENT FULL#
Between sharing on costs and marketing, the joint venture helps the airlines keep their planes full and gives travelers more options. In 2010, the DOT approved antitrust immunity for alliance agreements, including a coordinated revenue-sharing joint venture between American Airlines, British Airways, Iberia, and Finnair.Įssentially, Finnair, Iberia, British Airways, American Airlines, and Aer Lingus act as a single competitor in the market despite being multiple airlines. In December 2020, the DOT officially granted final approval for the inclusion of Irish carrier Aer Lingus within the joint venture agreement between American Airlines, British Airways, OpenSkies, Iberia, and Finnair. When Aer Lingus UK eventually does branch off from Aer Lingus and develops independent sales, marketing, and operational elements, the DOT will review the information and determine Aer Lingus UK’s standing within the AJB. This will be until the airline builds its own infrastructure to serve as a stand-alone carrier. The DOT’s understanding is that Aer Lingus UK will initially operate by utilizing Aer Lingus’s designator code, marketing capabilities, and distribution challenges. Aer Lingus is planning on launching Manchester-US operations in December. Aer Lingus UK will continue to be viewed as an immunized affiliate of Aer Lingus so long as it holds underlying economic authority to conduct and market air services between the United Kingdom and the United States.Ĭertain actions, such as Aer Lingus UK independently marketing its own services using its own airline code, must be submitted to the Office of Aviation Analysis at the DOT for review.
The airline will target transatlantic routes out of Manchester, a weaker airport for oneworld airlines in the United Kingdom. The same provisions and obligations will bind the UK branch of Aer Lingus as the Irish branch of Aer Lingus.Īer Lingus UK will participate in the joint venture in a metal-neutral fashion.
Homan, Director of the Office of Aviation Analysis, confirmed that the DOT will consider Aer Lingus UK, as the entity exists today, as an immunized affiliate of Aer Lingus under the immunized AJB. In a letter to counsel for Aer Lingus, Todd M. Photo: Vincenzo Pace | Simple Flying DOT confirms Aer Lingus UK can be a part of the joint venture Aer Lingus’ UK operations can be a part of the joint venture agreement with oneworld airlines. Now, the joint venture agreements will include the upcoming long-haul transatlantic Aer Lingus operations out of Manchester Airport (MAN) under the Aer Lingus UK banner, which will be a huge benefit to the airlines. Last year, Aer Lingus, while it is not a member of the oneworld alliance, received permission from the US Department of Transportation (DOT) to be a part of the Atlantic Joint Business (AJB) agreement between American Airlines, British Airways, Iberia, and Finnair.