Commission studying air alliance plan

British Airways, American Airlines and Iberia adjust proposals in bid to secure clearance from EU’s competition authorities.

Three leading airlines have offered to amend plans to co-ordinate their fares and schedules in exchange for the EU ending an antitrust probe.

The European Commission said today that it was “assessing the effectiveness of proposed commitments received from British Airways, American Airlines and Iberia”.

 

The three airlines, all members of the OneWorld alliance, last year sought permission from competition authorities to jointly manage schedules, capacity and pricing, as well as share revenues on routes between North America and Europe. They claimed they needed to co-operate more closely to compete with airlines in the rival Star Alliance and SkyTeam groupings. They said these rival groups already enjoyed “broad antitrust immunity”.

The Commission said in October, however, that it believed the planned co-operation might break EU competition rules.

The Commission today said it would send the airlines’ offer to “a number of key market players for comments”. It said that it would subsequently decide whether to put the offer out to broader consultation.

“This proposal requires further investigation before the Commission reaches any conclusion as to the next steps,” it said.

The Commission did not give any details about the airlines’ offer, saying it had “no further comment at this stage”.