10.03.10
The European Commission said yesterday that British Airways, American Airlines and Iberia, all members of the Oneworld alliance, have undertaken to cede slots at Heathrow, Gatwick and New York's John F Kennedy Airports. That concession is aimed toward lowering barriers to entry for different airlines to fly from London to New York, Boston, Dallas and Miami - routes where British Airways and AA currently dominate - in order to obtain agreement for a wider alliance on transatlantic flights.
The US Transportation Department gave preliminary endorsement to the deal last month on the proviso that BA and AA cede four pairs of takeoff and landing slots at Heathrow. The European settlement would force the airlines to give up more slots at Heathrow - 6 rather than four.
On the London - New York city pair, the airlines have offered to provide the competitor with operating authorisations at JFK. They will also undertake to offer access to their frequent flyer programs on the applicable routes, permitting passengers of the qualified new entrants to accrue and redeem miles.
The commission said it will be seeking comment from interested parties on the settlement until April 10, usually a sign that the regulator itself considers the proposal satisfactory. AP quotes bitter rival Virgin Atlantic saying that the airlines' offer is ‘woefully inadequate in counteracting the anti competitive damage of a combined BA/AA.’ BA responded recently that Virgin is not even using all the slots it already owns at Heathrow, leasing some to rivals rather than operating flights with them itself.
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