Five Airlines Propose Remedies for Transatlantic Operations Inquiry

The UK’s Competition and Markets Authority (CMA) is preparing to accept binding commitments offered by IAG International Airlines Group, American Airlines, and Finnair concerning their Atlantic Joint Business Agreement (AJBA). The inquiry, launched in October 2018 and resumed in September 2023 after the pandemic, focused on whether the AJBA between these airlines violated UK competition law by reducing competition on transatlantic routes.

The investigation centers on the coordination of flight schedules, pricing, marketing, and revenue sharing, potentially leading to excessive control over key routes such as London to Boston, Chicago, Dallas/Fort Worth, and Miami. This has raised concerns about fewer choices, higher fares, and diminished service quality for consumers.

To resolve the issue and avoid legal consequences, the five carriers have proposed remedies. These include offering slots at London Heathrow and Gatwick to new entrants on key transatlantic routes, with remedies lasting up to ten years from the start of the IATA Summer 2026 season. Additional measures include ensuring a minimum number of passengers on certain routes and allowing access to special prorate agreements and frequent flyer schemes for competitors.

American Airlines has confirmed its continued cooperation with the CMA, while IAG stated it is awaiting market testing results. Finnair was not immediately available for comment. The CMA is expected to make a final decision by April 23. All five airlines are part of the Oneworld alliance.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com