U.S. Grants Limited Nod to Hawaiian Japan Airline Partnership

June 15, 2019

The Trump administration rejected Hawaiian Airlines and Japan Airlines’ bid for antitrust exemptions to allow them to expand their partnership.

The US Department of Transportation said on Thursday that it plans to let the two airlines sell flights to each other and coordinate marketing and frequent flyer programs to provide services between Hawaii and Japan. But without antitrust immunity, they will not be able to coordinate prices and timelines.

Hawaiian Airlines expressed disappointment with the decision.

“This interim decision recognizes the consumer interests of our joint ventures, but it ignores the importance of antitrust immunity already enjoyed by major global airline alliances and undermines small US states like Hawaiian by preventing them from playing equally. The airline “Airline said.

In the United States, Delta and United have antitrust immunity to partners with foreign airlines.

The Hawaiian said it would challenge the decision within the 14-day comment period.

The Department of Transportation stated that the two airlines could achieve the same benefits without cooperation in antitrust immunity. Consumer advocates believe that airline antitrust immunity will inhibit competition and lead to higher fares.

If the department’s decision is finalized, then if the passenger stops at Japan, the airline can cross-sell the flight and conduct a route marketing plan between Japan and Hawaii and from Hawaii to 10 other Asian countries, including China and South Korea. Cooperation. The transaction does not include flights to and from the continental United States.