EU to waive anti-trust laws so BA, AA and Iberia can work together.

Airport news for Travel,Flights on 15/07/2010.

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A proposed alliance between British Airways, Iberia and American Airlines is a big step closer, after the European Union said it would exempt BA and Iberia from anti-monopoly laws designed to stop companies from co-ordinating their pricing and schedules. The plan still requires the support of US authorities. European regulators also approved a merger between BA and Iberia.

The planned alliance would see the airlines giving up four transatlantic landing and take-off slots in exchange for being allowed to share their costs. The BA-Iberia merger is also designed to help the two airlines cut their costs at a difficult time for the global aviation industry, which has faced higher fuel costs, a global recession, industrial action and a raft of natural disasters including volcanic ash and several disease scares. Following their merger, BA and Iberia will continue to operate under their existing brands whilst part of a new company known as International Airlines Group.

The EU said it was happy to approve the merger because the two carriers would still face competition from other airlines, even on the routes BA and Iberia are seen as dominating, such as London-Barcelona and London-Madrid. Once the merger is concluded, the group will be carrying 62 million passengers per year to more than 200 destinations, via 419 aircraft.

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