The U.S. Transportation Dept.'s tentative decision in the SkyTeam consolidation case grants expanded code-sharing authority but denies what the applicants wanted most—immunity from antitrust laws. Denial reflects a finding that the proposal would create few if any benefits for consumers. The department skirts the most unusual issue raised in the 15-month-old proposal—whether two major U.S. airlines can be given antitrust immunity offshore without compromising their duty to remain competitors in do-mestic operations. And it hints that it might look differently on some of the issues if the newly negotiated multilateral aviation agreement between the U.S. and the European Union takes effect. The agreement, an initial phase of a greatly liberalized, "beyond-open-skies" transatlantic regime, is subject to approval by EU transportation ministers.
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