EU gives three airlines anti-trust warning

BRUSSELS — The EU competition regulator said on Friday that it has warned British Airways, American Airlines and Iberia over agreements on transatlantic routes which could breach anti-trust rules.

The regulator, the European Commission, said that it had sent a "statement of objections" last month to the three companies, which are all members of the oneworld airline alliance.

The action concerns agreements between them "regarding the coordination of the parties' commercial, operational and marketing activities in relation to passenger traffic on transatlantic routes," it said in a statement.

"The commission considers (the accords) may be in breach of European rules on restrictive business practices," it said.


"Pursuant to these agreements, the parties intend to jointly manage schedules, capacity and pricing, as well as share revenues on transatlantic routes between North America and Europe," the statement added.

The three airlines said on August 14 that they had signed an agreement to cooperate on flights between North America and Europe to help them to overcome soaring fuel costs.

The venture between American Airlines, BA and Iberia came as British Airways and Spain's national carrier also discussed separate plans for a multi-billion-dollar merger.

A "statement of objections" is a formal step in anti-trust investigations.

Under the procedure, the commission informs the parties in writing of the objections raised against them. They can reply in writing setting out their defence, and can also request an oral hearing to present their case.

Brussels can then take a decision on whether their conduct breaks any rules.

The commission also said that a parallel investigation into four members of the Star Alliance, as well as a probe of some participants in the Skyteam group, are also continuing.