UK Watchdog Resumes Investigation into IAG, American Airlines, and Finnair Partnership

The UK’s Competition and Markets Authority (CMA) has resumed its longstanding investigation into the transatlantic partnership involving American Airlines, members of IAG International Airlines Group (British Airways, Iberia, and Aer Lingus), and Finnair. This renewed probe, focused on the Atlantic Joint Business Agreement (AJBA), will continue until March 2024, taking into account the post-Covid recovery in the aviation sector.

The AJBA, which includes agreements not to compete on routes between the UK and the US, has been under scrutiny since 2018. Originally investigated by the European Commission in 2009-2010, the partnership faced competition concerns, leading to 10-year binding commitments from the parties. In 2020, as the commitments expired, the CMA launched a review to assess the competitive impact of the deal, extending the interim measures until March 2024 to bridge the enforcement gap.

The CMA’s recent decision to resume its investigation underscores the ongoing importance of evaluating competition within the aviation sector, particularly as the industry navigates the challenges posed by the global pandemic. The partnership’s impact on routes connecting the UK and the US will be a focal point, with the CMA liaising with the US Department of Transportation during the process.

Both IAG and American Airlines have expressed their commitment to cooperating with the CMA, emphasizing the benefits the joint business agreement brings to millions of travelers through improved connections and expanded destinations. As the investigation unfolds, the aviation industry will be closely watching for potential implications on competition dynamics and collaborative agreements within the transatlantic market. Stay tuned for further updates on this evolving regulatory landscape.