EU Opens Two Antitrust Cases Looking At Airline Cooperation
20 April 2009 - 8:15PM
Dow Jones News
The European Union Commission said Monday it has launched two
antitrust cases looking in to airline cooperation on transatlantic
routes which could constitute an illegal cartel.
It said it suspects certain airlines under the broader Star and
oneworld alliance banners have cooperated too closely on prices and
capacity.
The first investigation concerns both existing and planned
cooperation between members of the Star Alliance group - Air Canada
(AC.A), Continental Airlines (CAL), Lufthansa (LHA.XE) and United
Airlines (UAUA).
The second investigation is into proposed deals between three
members of the Oneworld alliance - American Airlines (AMR), British
Airways (BAY.LN) and Iberia (INLA.MC).
The level of cooperation between the two groupings of airlines
"appears far more extensive than the general cooperation between
these airlines and other airlines which are part of the Star and
oneworld alliances," the commission said.
The agreements under scrutiny allow the airlines to coordinate
their commercial, marketing and operational activities on routes
between the European Union and North America.
The commission said it is concerned the airlines' plans to
jointly manage schedules, capacity, pricing and revenue on
transatlantic routes may lead to reduced competition on the
routes.
-By Peppi Kiviniemi, Dow Jones Newswires; +32 (0)2 741 1483;
peppi.kiviniemi@dowjones.com