Airlines, Rivalry, Government Policy, Five Forces

According to Wikipedia "When antitrust agencies are evaluating a potential violation of competition laws, they will typically make a determination of the relevant market and attempt to measure market concentration within the relevant market." A recent article in the Dallas Business Journal notes how and why American Airlines plans to ask the Department of Justice for anti-trust immunity. 

American Airlines Inc. is making its case for antitrust immunity for its oneworld Alliance to push forward with business arrangements with its members by filing a pre-emptive defense to possible objections that the Department of Justice recently raised in relation to an antitrust immunity case filed byContinental Airlines.

Tim Smith, a spokesman for American, said the airline became concerned with some of the issues the DOJ raised when Continental made a similar request to obtain antitrust immunity. He said because they raised those issues, American wanted to submit a filing in advance that responds to those issues. He said the filing basically says “there is no harm to competition” through the alliance.

In other words, American Airlinesrm  plans to argue not only that "you've already let the other guys do it" but also that strategic and code sharing alliances will not hacompetition. That's not quite the same thing as saying that competition will be enhanced, let alone that customers will benefit from any increased competition.