DOT overrides Justice, Continental Airlines wins antitrust relief

The victory wasn't unconditional, however. The DOT wouldn't extend the antitrust immunity to a handful of international routes where Continental and its new Star Alliance partners are in decent shape. Included are four across the Atlantic, for between the United States and Canada and all flights between the United States and Beijing. Under this arrangement, Continental won't be able to work together on pricing and scheduling for these restricted markets.

This part of the ruling recognizes the DOJ's concerns about the risk of decreased competition and increased prices.

The DOT decision should make it easier for Continental to compete, and the flexibility is desperately needed (not just for Continental but for nearly any airline in this market). Currently, Continental is the fourth largest airline in the United States, and United is the third. The antitrust immunity is similar to that enjoyed by Delta Airlines (NYSE: DAL) and Air France. American Airlines (NYSE: AMR) is hopeful that the decision will make its application for antitrust immunity successful, as well. American seeks to partner with Spain's Iberia on service across the Atlantic.