Commission investigates airline cooperation agreements

The European commission has opened two investigations into cooperation between several airline companies which may be in violation of competition rules, reports El Pais.

The investigations will concentrate on cooperation agreements of transatlantic lines, especially the routes between the US and Europe.

According to the paper, the airlines under investigation in the first instance include Air Canada, Continental, Lufthansa and United Airlines, four companies pertaining to Star Alliance.

The second investigation is expected to involve cooperation agreements between Iberia, American Airlines and British Airways, members of Oneworld.

The Wall Street Journal believes the commission is unlikely to disband the alliances or fine members, and says that according to people briefed on its plans, it may instead curb some of their existing and planned cooperation on routes, fares and marketing.

Meanwhile, the Guardian carries news that BA said it expected the investigation in the vetting process for its proposed tie-up with AA and Iberia. However, a commission spokesman dismissed comments from Continental Airlines describing the probe as routine as misleading.

 

Source: Transportweekly