Antitrust Immunity for Airline Alliances: Legal and Institutional Frameworks in China
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AbstractBecause the aviation market in China has been growing rapidly, the level of competition has increased substantially as more airlines from China and foreign countries have entered the market and increased the number of flights. In a competitive market, an airline alliance is a flexible organizational form offering growth potential and a commonly used business practice in the industry. Although low-level airline alliances generally do not create competition law concerns, high-level airline alliances may have the object or effect of restricting competition. This makes necessary an analysis of competition law. The view in many jurisdictions is that if the effıciencies that an airline alliance enhances and the benefits it provides consumers outweigh its anticompetitive effects, the government can grant it an exception, which is known as antitrust immunity. In contrast, China’s ten year old Antimonopoly Law does not set clear rules about antitrust immunity for airline alliances, and Chinese antitrust regulators have yet to formalize the process of granting antitrust immunity to airline alliances. However, there are telltale signs of reform. More stable legal and institutional frameworks for antitrust immunity will help airlines comply with the Antimonopoly Law while enhancing effıciencies by alliances.
All Author(s) ListJae Woon Lee, Xiongfeng Li
Journal nameChina Antitrust Law Journal
Year2018
Month12
Volume Number2
Issue Number1
PublisherLexisNexis
Article number1
Pages1 - 22
LanguagesEnglish-United States

Last updated on 2020-09-04 at 14:01