| By Adrian Schofield/Aviation Daily |
 Barack Obama’s pick for Transportation Secretary, Ray LaHood, has previously urged DOT to approve the American/British Airways joint venture proposal, raising the likelihood that LaHood would have to recuse himself in this high-profile case. LaHood wrote to DOT regarding the AA/BA issue on Sept. 24, although the letter has only just been posted on the docket. At the time, he was still a congressman from Illinois. It appears to be a form letter signed by LaHood for an airline with a strong presence in Illinois, but it could cause accusations of bias from opponents of the AA/BA deal. “As part of the confirmation process, these types of issues will be thoroughly reviewed by the appropriate ethics officials,” a DOT spokeswoman said. Washington sources spoken to by The DAILY believe DOT lawyers would likely recommend LaHood’s recusal. This would not be that uncommon — former Transportation Secretary Norman Mineta, for example, recused himself in DOT dealings with United as his wife was a former flight attendant for the Chicago-based carrier. The AA/BA issue could be raised during his confirmation hearing, but it would be unlikely to be a major hurdle. One source noted that in writing the letter, LaHood was acting entirely appropriately as a representative for his district. Opinions are divided about whether LaHood’s recusal would slow down the decision process. An industry observer said it will take time for the Obama Administration to nominate a deputy secretary and other political posts at DOT, and an acting deputy may be hesitant to sign off on a contentious decision like this. In his letter to DOT, LaHood expresses his support for the joint venture, as well as for the antitrust immunity application filed by oneworld carriers American, BA, Iberia, Finnair and Royal Jordanian. The letter lists many of the arguments used by American and BA, such as the oneworld carriers needing ATI to compete with the other two alliances that dominate the transatlantic market. The joint venture would “have a positive impact on air travel by offering customers more service, scheduling and pricing options.” DOT Acting Assistant Secretary for Aviation and International Affairs Michael Reynolds replied to LaHood’s letter on Oct. 8, acknowledging receipt and explaining the regulatory process that will be followed. As the proceeding is pending, Reynolds said he “cannot comment on the merits of the case.” However, he said a copy of the letter would be placed on the docket. “I appreciate your interest in this proceeding,” Reynolds said. DOT last month asked for more information before declaring the oneworld applications complete. When the application is deemed complete, DOT has six months to make a decision. Photo: Oneworld sources: www.aviationweek.com |
