• From The BBC:

    The European Commission has opened an antitrust investigation into a revenue-sharing deal between British Airways, American Airlines and Iberia.
    “It is not a merger investigation and has no specific deadline,” European Union spokesman Jonathan Todd said.
    He said the EU initiated the investigation, which will consider if the deal breaches competition rules. It did not follow a specific complaint.
    Virgin Atlantic has voiced concern about the deal.
    The tie-up is the closest alliance possible under US airline laws, which forbids foreign ownership of major US carriers.
    The BA alliance with American Airlines will allow the two carriers to agree fares, routes and schedules together. The move will also include Spain’s Iberia, which is merging with BA.
    The three airlines say it would enable them to compete more effectively but Virgin Atlantic said it would create “a dominant mega-power” on routes between Europe and the United States.
    Cutting costs
    British Airways and American Airlines a…

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    Posted by Jon @ 12:00 pm

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