European Commission Backs British Airways Alliances with Iberia and American Airlines
The executive body of the European Union has given immunity to British Airways, American Airlines and Iberia over antitrust laws. This means that the carriers will be able to coordinate schedules and prices, which will help them and travelers save money.
With this announcement, made on Wednesday, the plan between the airlines hits the halfway mark. Before they can go ahead with further details of the agreement, however, the US Department of Transport has to give their approval for the plan. If they are approved, each airline will give up 4 transatlantic landing and takeoff slots. It is their hope that they will be able to begin working under the deal by this autumn.
The announcing of this plan between British Airways and American Airlines hasn’t gone without criticism from rivals. The chief executive of Virgin Atlantic, Steve Ridgway, has lashed out that the carriers are only trying to dominate key transatlantic routes more than they do already by creating a monster monopoly that will only hurt travelers. However, British Airways hit back that their cooperation with American Airlines will benefit passengers by offering them more destinations to choose from and lowering prices.
The approval from the European Commission comes after the executive body approved the British Airways and Iberia merger, saying that the combined company will still have competition among rivals. The main concern was routes like London to Barcelona and Madrid, but after review, this isn’t an issue anymore.
The merged company is set to be called International Airlines Group; however, the two carries will still operate normal services under their own brands. Together they will fly 62 passengers per year on 419 aircraft to more than 200 global destinations.
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