facebook
twitter
rss
account
search
search
 

EU regulators eye 3-way airline deal

Aug. 30, 2008 at 8:58 AM   |   Comments

BRUSSELS, Aug. 30 (UPI) -- A plan by British Airways, Iberia and American Airlines to share revenues on flights has drawn interest from regulators, the European Union says.

The European Commission has launched an inquiry into the deal, which would see the three airlines share revenues on their flights from North America to the 27 E.U. countries, the Financial Times reported Saturday.

Officials said it's not a formal merger investigation with a fixed timeline, but rather an inquiry to determine if the proposal to coordinate the airlines' prices, capacity and schedules on trans-Atlantic routes would violate E.U. antitrust laws.

The announcement by BA, Spain's Iberia and American is the first big airline industry proposal under the new U.S.-E.U. "open skies" agreement that came into effect in March. Late last month BA announced it intended to merge with Iberia, which it said would help its position in the international airline industry and reduce its aircraft, maintenance and staffing costs.

That move was blasted by Richard Branson, president of Virgin Atlantic Airlines, who said the deal would create "a monster monopoly that would push up ticket prices," the Financial Times reported.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
2014: The Year in Music [PHOTOS]

2014: The Year in Music [PHOTOS]

Most Popular
1
Verizon will soon let you choose what TV channels you want to pay for Verizon will soon let you choose what TV channels you want to pay for
2
Etsy bans sale of items with Redskins name, imagery Etsy bans sale of items with Redskins name, imagery
3
Meggitt receives $17.7 million Army order for target systems Meggitt receives $17.7 million Army order for target systems
4
Organic food brand at Kroger's to hit $1B in sales Organic food brand at Kroger's to hit $1B in sales
5
Lockheed Martin opens technology center
Trending News
Video
x
Feedback