The European Commission on Wednesday said American Airlines, British Airways and Iberia have offered to give up slots between London Heathrow or Gatwick airports and Boston, New York, Dallas and Miami in their quest to gain antitrust immunity and move forward with their proposed joint venture.
"On the London-New York citypair, the parties also propose to provide the competitor with operating authorizations at New York JFK airport," the EC said in a statement regarding its antitrust review of the carriers. The EC launched the review last year amid objections that the proposed joint venture "may be in breach of European rules on restrictive business practices"
(BTNonline, Oct. 8, 2009). The EC this week said it now would invite interested parties to comment on those concessions.
"Subject to comments received, the Commission may decide to make the commitments legally binding on British Airways, American Airlines and Iberia," the EC said.
A vociferous opponent of its competitors' antitrust immunity, Virgin Atlantic president Sir Richard Branson called those airport concessions "woefully inadequate"
Branson in a statement said he met with the EC's new Commissioner for Competition Joaquin Almunia to sway him from allowing the joint venture to go forward as planned. "I was pleased to have the opportunity to meet with the Commissioner to discuss our very real concerns for consumers if this anti-competitive alliance were to be permitted to proceed," Branson said in a statement. "I hope that the Commissioner takes time to consider the proposals through the eyes of consumers before any decision is taken on whether it is given the go-ahead."
Throughout its review, the EC said it has been in "close contact" with the U.S. Department of Transportation, which last month tentatively approved the joint venture on the condition that American and British Airways relinquish four daily slot pairs at Heathrow Airport
(BTNonline, Feb. 15).
American CFO Tom Horton this week during the J.P. Morgan Aviation, Transportation & Defense Conference in New York City said he expects to implement the joint venture in the second half of the year, but only after DOT finalizes its approval, which is in the midst of its own comment period, slated to end in April.
American also has an antitrust immunity proposal with Japan Airlines before DOT. "Our proposed joint business agreements—both with BA/Iberia as well as with JAL—are particularly important to corporate sales efforts," Horton said in his prepared remarks, echoing competitor sentiments
(BTNonline, March 8). "Today, global companies are increasingly looking to negotiate large parts of their airline network needs with one alliance. With an immunized partnership, like the ones enjoyed by our competitors between Europe and the U.S., we can offer a one-stop shop to key corporate clients. Our joint business agreements will allow our sales teams to work together to sell a more comprehensive network in key business markets."