The European Commission has told British Airways, American Airlines and Iberia that they may have to give up take-off and landing slots to be allowed to press ahead with a transatlantic tie-up, the Financial Times said today.
The Financial Times, which cited documents relating to the matter, reported that the EC said an agreement between the three groups was 'likely to result in appreciable competitive harm' on seven Europe-US transatlantic routes.
The EU's competition regulator 'envisages issuing a decision finding that the series of agreements signed have been in breach' of competition laws and would order that the 'infringements' are ended, the financial daily added.
'Remedies may include the transfer of airport slots' to rival airlines, the EC added, according to the documents obtained by the FT.
The three airlines revealed on August 14 last year that they had signed an agreement to cooperate on flights between North America and Europe to help them to overcome soaring fuel costs and falling demand.
British Airways said today that the group looked forward to addressing the European regulator's concerns. 'We look forward to the opportunity to address and overcome the EU's concerns, especially given the substantial benefits for consumers that would result from our transatlantic joint business,' BA said.
At the start of October, the European Commission had warned BA, AA and Iberia over the deal which it said could breach competition rules. The regulator sent a 'statement of objections' to the three companies, which are all members of the Oneworld airline alliance.
