European regulators have given a green light for British Airways, Iberia and American Airlines to work together – an alliance that rival Virgin Atlantic calls a “monster monopolyâ€.
The EU Commission said it would give BA and Iberia immunity from anti-trust laws that prevent businesses from co-coordinating prices and schedules.
The plan, in which the airlines would share costs, but give up four transatlantic take-off and landing slots, still needs US approval.
The regulators also approved BA’s merger with Spain’s Iberia.
That deal – to create Europe’s third-largest carrier – is aimed at helping both carriers cut costs as the industry struggles to make money.
The BA and Iberia brands will continue to operate as normal.
Virgin Atlantic has been vocal in its opposition to the deal between BA and American Airlines which it describes as a “monster monopoly”.
Chief executive Steve Ridgway told the BBC that BA already had the bulk of transatlantic flights from the UK, in particular out of Heathrow, and said that customers would suffer.
“BA and AA are not doing this to win a popularity contest. They’re doing it because they want to dominate even more strongly these key markets across the Atlantic.”
