UK Ends Consultation on Transatlantic Airline Pact Commitments
The UK’s Competition and Markets Authority (CMA) has concluded its consultation on commitments proposed by American Airlines, British Airways, Iberia, Aer Lingus, and Finnair concerning their Atlantic Joint Business Agreement (AJBA). The regulator has indicated its intention to accept the commitments, which are aimed at addressing potential competition concerns.
The AJBA allows these Oneworld alliance members to coordinate transatlantic operations, including revenue sharing, route planning, and slot allocation. British Airways, Iberia, and Aer Lingus are part of IAG International Airlines Group, while all five carriers collaborate closely under the joint business structure.
The CMA has been examining the impact of the agreement since 2018, specifically focusing on whether it restricts competition on routes between London Heathrow and four U.S. cities: Boston, Chicago O’Hare, Dallas/Fort Worth, and Miami. The authority is concerned that the level of cooperation could reduce competition and choice for passengers on these key transatlantic routes.
In response, American Airlines and British Airways have proposed a set of remedies. These include releasing slot pairs at Heathrow for new entrants or competitors on the Boston, Chicago, and Miami routes. For the Dallas route, the carriers have agreed to maintain a minimum volume of point-to-point traffic. They have also pledged to offer connecting flight access to rival airlines on favorable terms.
The consultation, which closed on April 23, gave stakeholders an opportunity to object or comment. Unless compelling arguments are raised, the CMA is expected to formally accept the commitments and close the investigation.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com