Tuesday, January 12, 2010

Horan's Hard Look at the oneworld Application

Hubert Horan--a private aviation consultant and analyst who has provided commentary on airline alliances for this blog here, here, and here--recently issued his own series of criticisms concerning the oneworld Alliance's application for antitrust immunity from the Department of Transportation.  See Hubert Horan, Supplemental Comments, Dkt. No. DOT-OST-2008-0252 (Jan. 8, 2010) (available here). 

Horan's filing covers a number of areas not addressed in the Justice Department's recent series of criticisms.  Specifically, Horan argues that oneworld's claim its alliance will produce $92 million in annual public benefits is deficient; that the consumer welfare benefits created by North Atlantic alliances were fully exhausted by the late 1990s; and that earlier economic studies which claim to demonstrate alliance benefits are either false or misleading.  While Horan's remarks may not find favor with all of the blog's readership, they are an important contribution to the intellectual debate over the future of alliances and their immunization from U.S. antitrust law.


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