EC Begins Anti-Trust Proceedings Against Oneworld Alliance

by Ulrika Lomas, Tax-News.com, Brussels

06 October 2009

The European Commission has sent a statement of objection to members of the ‘oneworld airline alliance,’ comprising of British Airways, American Airlines and Iberia, warning that their proposed cooperation on passenger air transport services on transatlantic routes may be in breach of European rules on restrictive business practices.

The Commission's Statement of Objections concerns agreements concluded between British Airways, American Airlines and Iberia, regarding the coordination of the parties' commercial, operational and marketing activities in relation to passenger traffic on transatlantic routes (principally routes between the EU and North America).

Within the agreement, the parties intent to jointly manage schedules, capacity and pricing, as well as share revenues on transatlantic routes between North America (Canada, Mexico, US and Puerto Rico) and Europe (EU, Norway and Switzerland).

The Commission's parallel investigations into the proposed cooperation between four Star Alliance members (Lufthansa, Continental, United and Air Canada) and that between Skyteam members (Air France/KLM and Delta/Northwest) are still ongoing.

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, setting out all facts known to it which are relevant to its defence. The party may also request an oral hearing to present its comments on the case.

The Commission may then take a decision on whether the conduct addressed in the Statement of Objections is compatible or not with the EC Treaty's antitrust rules.

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