Airline alliances could reshape industry

NEW YORK, Dec. 31 (UPI) -- Alliances between major airlines are reshaping the industry to the point where antitrust issues could become a concern, a U.S. aviation consultant said.

Presently, Delta and American have each said they would pump $1 billion Japanese Airline Corp. if given the opportunity, The Chicago Tribune reported Thursday.

United and Continental are pursuing a partnership with All Nippon in an effort to command more of the market share in a lucrative Asian market.

"Japan is by far the largest market in the Pacific. The stakes raised are illustrative of how important global alliances have become for all of the carriers," said Mark Schwab, senior vice president for alliances, international and regulatory affairs at United Airlines.

A consultant for Delta, which is merging with Northwest Airlines, Jeff Shane, said alliances "unleash the creativity … all kinds of innovative things can happen."

But aviation consultant Hubert Horan said one of the things that can happen is counter-productive for consumers.

"When you get down to the point in a market as huge as the trans-Atlantic or trans-Pacific where there's only three players, then you have pricing power," he said.