European Commission Approves Tie-up Between American Airlines, British Airways, and Iberia
Sharon MillerIt now seems that the European Commission has given the go ahead for the three-way transatlantic tie-up between three famous airlines. These airlines – British Airways, American Airlines, and Iberia – have been looking forward to this tie-up for a long time.
The European Commission said that it would grant the airlines immunity from European antitrust laws. These are the same laws that prevent businesses from coordinating prices and schedules. Under this new approved plan, the airlines will be able to share costs, but will have to surrender four transatlantic takeoff and landing slots.
Despite this great news for the airlines, it is not a done deal yet. Although the European Union has approved it, the United States Department of Transport still has to give it a stamp of approval before it is given the official go ahead. Subject to United States approval, the airlines due expect to be working together starting this autumn.
Willie Walsh, who is the chief executive of British Airways, said that they await the Department of Transportation’s final decision. However, they welcome this important and vital step forward.
In other news, British Airways and Iberia are attempting to merge together. These two airlines will form a new group called the International Airlines Group. Despite the fact that they will form a new company, they will still continue to operate as normal under their own brand names. The European Commission said that it did not have any anti-competition concerns over the merger of these two airlines. They said that they assume that the airlines will still face competition from their rivals.
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Filed under Business & Finance, Europe News, Travel News, UK News, World News