BRITISH Airways and American Airlines should give up 126 slots
in the UK and US if they want to form an alliance, the US Department of Justice
has said.
THE DOJ, which has been advising the US Department of
Transportation, believes the alliance as currently constituted could reduce
services and push up air fares, Travel Weekly sister publication Air Transport
Intelligence is reporting. The DOJ believes the divesture of slots between
London and several major US cities will allow new entrants to compete in the
market.
The two carriers, however, have responded saying they are in
favour of competition.
The final decision on whether to approve the alliance rests
with the DOT.