Antitrust investigation continues into British Airways and American Airlines merger

The European Commission has decided to begin an antitrust investigation into the merger of British Airways, American Airlines, and Iberia.  The European Commission has noted that there are no official deadlines for the investigation which has been underway since July.

Under the new alliances the three airlines will work together on their fare cost for flights and different schedules that they have.

An official working close to the investigation by the European Commission has said that “There are no specific deadlines but we will try to come to a conclusion as soon as possible. If airlines which normally compete get together we have to make sure it is not to the detriment of consumers.”

Virgin Atlantic has been very outspoken in their belief that the merger of the three airlines will in fact hurt customers more than it will help them.  The chief executive officer for Virgin Atlantic, Steve Ridgeway, said “The European Commission have rightly begun an investigation, under their own initiative, because they understand that consumers will be worse off if this alliance proceeds. The proposals would create a monster monopoly, which would mean that BA/AA and Iberia would be way too dominant on key routes into and out of Heathrow airport.  The European Commission will also be aware that the fragile state of the European economy is no excuse for BA/AA to be given the go ahead, as we all know that monopolies never work in the consumers favor, in good times or bad.”

The partnering of the three airlines would result in them having control of about half of the available slots at Heathrow Airport. 

http://ec.europa.eu