ATW Daily News

Oneworld trio reportedly must cede slots to win EC approval

Tuesday October 27, 2009

The European Commission will require oneworld partners British Airways, American Airlines and Iberia to surrender slots in order to gain clearance for their transatlantic alliance, the Financial Times reported, citing documents saying the joint venture is "likely to result in appreciable competitive harm" on seven Europe-US routes.

European authorities reportedly are concerned about competition on flights from London to New York, Dallas, Boston, Miami and Chicago O'Hare, as well as from Madrid to both Miami and ORD. The EC's concerns were outlined in a confidential statement sent to the airlines three weeks ago (ATWOnline, Oct. 5). It said it "envisages issuing a decision finding that the series of agreements signed have been in breach" of competition laws and that "remedies may include. . .the transfer of airport slots" to competing carriers, the FT reported from Madrid.

The airlines had one month to respond to the EC notice. BA CEO Willie Walsh has vowed on several occasions that the carrier will not relinquish any slots at London Heathrow.

The trio, along with alliance partners Royal Jordanian and Finnair, also are seeking antitrust immunity from the US Dept. of Transportation, which is expected to issue a preliminary response this week (ATWOnline, March 17).

The FT reported that IB said the airlines were "satisfied that they could address the concern of the [EC]," while AA said, "We look forward to the opportunity to address and overcome the EU's concerns." In a statement to Bloomberg News, BA said, "On the issue of giving up slots at Heathrow, we don't believe that this is necessary given the number of airlines flying between the EU and US."

by ATWOnline Staff

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