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Brussels to probe seven airlines Brussels to probe seven airlines
(20 minutes later)
The European Commission has launched anti-competition investigations into seven airlines, accusing them of excessive co-operation.The European Commission has launched anti-competition investigations into seven airlines, accusing them of excessive co-operation.
Two separate probes have been started, one into the relationship between Star Alliance members Air Canada, Lufthansa, Continental and United Airlines.Two separate probes have been started, one into the relationship between Star Alliance members Air Canada, Lufthansa, Continental and United Airlines.
The other investigation is into One World members American Airlines, British Airways and Iberia. The other investigation is into One World members American Airlines, British Airways (BA) and Iberia.
The Commission said their co-operation may be excessive and breach rules. BA said the Commission had admitted it did not have proof of any violation.
The investigations are into transatlantic routes between Europe and North America.The investigations are into transatlantic routes between Europe and North America.
'More extensive''More extensive'
"The level of co-operation in question appears far more extensive than the general co-operation between these airlines and other airlines which are part of the Star and One World alliances," the Commission said in a statement."The level of co-operation in question appears far more extensive than the general co-operation between these airlines and other airlines which are part of the Star and One World alliances," the Commission said in a statement.
We believe that the EU-US market is highly competitive with 42 airlines competing non-stop between the two areas BA spokesman
"In particular, the parties to each agreement intend to jointly manage schedules, capacity, pricing and revenue management on transatlantic routes, as well as share revenues and sell tickets on these routes without preference between these carriers," it added."In particular, the parties to each agreement intend to jointly manage schedules, capacity, pricing and revenue management on transatlantic routes, as well as share revenues and sell tickets on these routes without preference between these carriers," it added.
The Commission said there was no deadline for the completion of its investigation.The Commission said there was no deadline for the completion of its investigation.
It comes a year after the "Open Skies" agreement between the European Union and US aimed to enable more airlines to start transatlantic routes. "We believe that the EU-US market is highly competitive with 42 airlines competing non-stop between the two areas," said a BA spokesman.
The Commission's investigation comes a year after the "Open Skies" agreement between the European Union and US, which aimed to enable more airlines to start transatlantic routes.