EAGAN, MINNESOTA - The U.S. Department of Transportation has delayed for a fourth time a decision on the proposed alliance between Delta, Northwest and Continental airlines, citing competitive concerns. <br>
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The nation's third-, fourth- and fifth-largest carriers proposed the alliance in August, seeking permission to sell tickets on each other's flights and coordinate ticketing, baggage handling and frequent-flier programs. <br>
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The proposal would add Delta to the alliance already in place between Northwest and Continental. The airlines say they would remain competitive, but the DOT is trying to determine how strongly they would compete. <br>
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The DOT, which delayed its decision Thursday for another 30 days, can let the alliance go into effect, modify it or block it. <br>
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The DOT and the three carriers would not discuss specific concerns, but Northwest said it believes it can deal with the DOT concerns. <br>
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Some smaller airlines have argued that the alliance would stifle competition by making it harder for rivals to challenge the big carriers in markets where Delta, Northwest and Continental dominate. <br>
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Michael E. Levine, a former airline executive who now teaches law at Yale University, wrote the DOT at the request of Northwest, urging the department to finish its review promptly and allow consumers to decide whether they like what private, competing airlines offer them in the marketplace.
