Contributor - Europe

Cathy Buyck

The UK’s antitrust regulator has launched an investigation into the Atlantic Joint Business Agreement between American Airlines, International Airlines Group (IAG) subsidiaries British Airways and Iberia, and Finnair ahead of the country’s exit from the EU in March 2019. The probe stands to create yet another headache for IAG, which continues to deal with the legal consequences of last month’s major cyber attack of BA’s website and the uncertainty of Brexit on that airline’s operations and ownership structure. &nbsp;

 


The joint venture, which includes pricing, capacity, and scheduling coordination as well as revenue sharing of all passenger air transport services on routes between Europe and North America, gained approval from the European Commission in 2010 under certain conditions.&nbsp;As part of the commitments, the airlines agreed to make landing and takeoff slots available to competitors on Madrid-Miami and five routes from London—either London Heathrow airport or London Gatwick airport—to Dallas, Boston, Miami, Chicago, and New York. The undertakings were binding for 10 years and thus will expire in 2020.

 


“As five of the six routes subject to commitments are from the UK, and to prepare for the time when the European Commission may no longer have responsibility for competition in the UK, the Competition and Markets Authority&nbsp;(CMA) has decided to review afresh the competitive impact of the agreement in anticipation of the expiry of the commitments,” the UK regulator said Thursday.

 


The CMA said it is liaising with the European Commission and the U.S. Department of Transportation in relation to the investigation and stressed the case remains at an early stage. “No assumption should be made that the Atlantic Joint Business Agreement infringes competition law,” it said. Brussels could reassess the agreement in 2020, though no regulation requires it to do so.

 


IAG said only that it noted the CMA’s announcement and will respond to its review.

 


“Since 2010, British Airways and Iberia’s transatlantic joint business with American Airlines and Finnair has been bringing significant benefits to millions of travelers,” IAG stressed. “It provides them with improved access to cheaper fares and easier journeys to more destinations. During this period the joint business has launched 45 new routes including 14 between the UK and U.S.”

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

UK Authorities Review IAG Joint Venture with AA, Finnair 

Investigation prompted by Brexit 

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Agreement between start-ups could lead to orders for up to 15 aircraft

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Howard Hardee

Airline plans to gradually replace its Embraer E-Jet fleet

A220’s Performance Drives BermudAir’s Fleet Growth

Partners say eVTOLs could accelerate response times in crowded Indian cities

Air India Backs SkyDrive Emergency Medical eVTOL Plans

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Airbus Balances Shareholder Returns and New Aircraft

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

Connections to London Heathrow and Manchester airports will start first

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

More In Airlines

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Agreement between start-ups could lead to orders for up to 15 aircraft

A220’s Performance Drives BermudAir’s Fleet Growth

Airline plans to gradually replace its Embraer E-Jet fleet

Air India Backs SkyDrive Emergency Medical eVTOL Plans

Partners say eVTOLs could accelerate response times in crowded Indian cities

Airbus Balances Shareholder Returns and New Aircraft

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

Connections to London Heathrow and Manchester airports will start first

ATR Chases New Regional Markets for Twin Turboprops

Iran war and wider geopolitical pressure stall buying decisions

Embraer Racks Up E-Jet Orders at Farnborough

30 firm orders led by Abra

Gulf Air May Buy JetZero’s Blended-wing-body Z4

Japan Airlines also expresses interest at Farnborough Airshow

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN