EU objects to proposed BA tie-up with American Airlines

British Airways confirmed on October 2 that it has received a formal statement of objections from the European Union, regarding the proposed tie-up between British Airways, American Airlines and Iberia.

While the UK airline has confirmed official receipt of the legal documents, it has refused to divulge its contents. British Airways has said the concerns expressed by the EU were in the process of being examined, and the airline would respond would respond in due course of time.

Objections raised against the proposed transatlantic tie-up reportedly include concerns regarding competition on US routes, including connections between Heathrow airport and cities like Dallas and Miami. Concerns have been raised by other airlines too, including Virgin Atlantic. Virgin has said that the proposed alliance would be a “monster monopoly”, which would give the two carriers the ability to dictate prices and schedules at Heathrow.

Together, claimed Virgin, British Airways and American Airlines would be in control of 62% of the flight capacity between London’s Heathrow and New York’s JFK airports. The alliance, if approved, would have 100% of the capacity from Heathrow to Dallas Fort Worth, and also stake a claim on 80% of the routes to Boston’s Logan International Airport.

Virgin has insisted that regulators in the US should also, for their part, critically examine any claims that such an alliance would increase competition. British Airways had earlier claimed that an alliance between the UK carrier and American Airlines would do just that.