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NEWS LETTER 2 0 1 0

138

British Airways, American Airlines, and Iberia Commitments

on Transatlantic Passenger Air Transport Markets have been

Approved by the Commission

*

The Commission has approved the commitments offered by British

Airways, American Airlines, and Iberia, members of the Oneworld Airline

Alliance.

Facts

Antitrust Proceedings

In April 2009, the European Commission opened two formal antitrust

proceedings in relation to cooperation between certain airline companies.

This cooperation concerns transatlantic routes. The first investigation

relates to the cooperation between Air Canada, Continental, Lufthansa,

United

1

, and the second to proposed cooperation between three members

of the Oneworld Alliance, American Airlines, British Airways, and Iberia.

This summary concerns the second investigation.

Anti-competitive Agreements

The agreements between airline companies consider commercial,

marketing and operational coordination on transatlantic routes, principally

routes between the EU and North America. This coordination involves

revenue-sharing and joint management of schedules, pricing, and capacity

on all routes between North America and Europe.

Statement of Objections

In September 2009, the Commission sent a Statement of Objections

(hereinafter referred to as the “SO”) to American Airlines, British Airways,

and Iberia

2

. The SO underlined that the extensive cooperation between the

aforementioned airlines may breach EU competition rules on restrictive

*

Article of August 2010

1 Current and prospective members of Star Alliance.

2 A Statement of Objections is a formal step in Commission antitrust investigations in which the

Commission informs the parties concerned in writing of the objections raised against them.

The addressee of a Statement of Objections can reply in writing to the Statement of Objections,

setting out all facts known to it which are relevant to its defense against the objections raised

by the Commission. The party may also request an oral hearing to present its comments on the

case.