(Adds details, background)
By David Shepardson
WASHINGTON, Nov 16 (Reuters) - Irish airline Aer Lingus
received tentative U.S. approval on Monday to join the Oneworld
carrier alliance, the U.S. Transportation Department announced,
a move that will give the joint venture control of more than
half of the U.S.-Ireland flight market.
Airlines are expected to expand capacity on some existing
routes while introducing service on several new routes, allowing
more options for travel between the United States and Ireland as
well as the rest of Europe, the department said.
The alliance includes American Airlines, British
Airways, OpenSkies SAS, Iberia, and Finnair. The carriers
requested the U.S. agency extend the joint venture's antitrust
immunity to include Aer Lingus.
The approval will integrate Aer Lingus into Oneworld's
network planning, pricing and sales. Aer Lingus did not
immediately comment.
Aer Lingus controls 44% of the U.S.-Ireland flight market, a
figure that will rise to 60% for the alliance.
In 2015, International Consolidated Airlines Group (IAG)
, the parent company British Airways, Iberia and
OpenSkies, acquired Aer Lingus. The group petitioned in 2018 to
allow Aer Lingus join the alliance.
Despite the alliance's majority market share, the U.S.
regulator noted steps that it said would support competition.
As a condition of approval, the department proposed Oneworld
maintain commitments to release landing and takeoff gate slots
at London airports to competitors. Those were imposed when the
alliance was first approved in 2010.
In addition, the U.S. Transportation Department noted the
presence of a strong competitor outside the alliance. It said
the second-largest carrier in the Irish-U.S. market, low-cost
airline Norwegian, "has shown an aggressive ability to
challenge established carriers in the transatlantic market with
its low-fare pricing model."
The Transportation Department also argued that new aircraft
models will allow airlines to fly transatlantic routes with
fewer seats and lower costs.
The public can comment on the tentative decision for two
weeks before it is finalized.
(Reporting by David Shepardson; Editing by Cynthia Osterman)