BA merger gets thumbs up from Europe - TravelMole


BA merger gets thumbs up from Europe

Tuesday, 15 Jul, 2010 0

 

British Airways has had the thumbs up from the European Union for its merger with Iberia.

The two airlines have been given final regulatory approval along with American Airlines by the European Commission on a joint business agreement on transatlantic flights.

 

No conditions have been applied to the merger, which is expected to take place at the end of the year.

 

 

With the agreement, the three airlines expect a final decision on anti-trust immunity from the US Department of Transportation imminently.

 

British Airways chief executive Willie Walsh said: “We await the DOT’s final decision but welcome this important and vital step forward. The high number of new services on London to US routes since the Open Skies agreement demonstrates that Heathrow is open.

 

 

“Between us, we have agreed to make available Heathrow slot pairs for our competitors to use on services to the US.

 

 

“This is a pragmatic decision so that we can get the joint business up and running as soon as possible.

 

 

“The slot commitments provide a further guarantee that there will be no possible loss of competition as a result of our joint business”.

 

 

The slots will be available if competitor airlines can’t acquire them through the normal means.

 

 

The London-New York slots will only have to be made available if the amount of services on the route falls below currently announced levels.

 

The airlines plan to launch the transatlantic joint business this autumn.

Cheapflights Media, the international flight deals publisher, welcomed the deal.

CEO Chris Cuddy said: “Cheapflights applauds the EU’s decision to open transatlantic routes to the One World alliance and to allow the BA/Iberia merger. This move helps keep the EU airline industry competitive for travelers which is good for everyone.”

Bob Atkinson, travel expert at www.travelsupermarket.com, agreed the move was good news for travellers, but warned: “The airline claims the merger and alliance will help cut costs, however, forcing through company changes and efficiency savings are exactly the challenges that have brought BA head-to-head with its cabin crew and Unite in the current dispute. And of course, the situation has the potential to be just as difficult for American Airlines and Iberia, who aren’t without their own industrial difficulties.

The news, however, was not greeted with enthusiasm from BA’s rival Virgin Atlantic.

Boss Sir Richard Branson said: “We have fought this monster monopoly for the past 13 years and are still resolute in our belief that this decision is shameful and consumers will suffer greatly as a result.

“The European Commission has let consumers down by agreeing to paltry remedies which are wholly inadequate.”

by Dinah Hatch and Bev Fearis



 

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