Brussels, 15/05/2001 (Agence Europe) - The European Commission has just authorised Airline, a group of seven airlines, and the United Kingdom government, to take joint control NATS, the British control body for air traffic. In the absence of overlaps in activities, the Commission undertook a detailed examination to determine whether the participation of British Airways and the six other airlines in Airline for the management of NATS risks creating or strengthening dominant positions. Its investigation enabled it to conclude that this is not the case.
Britannia Airway, British Airways, British Midland, Easyjet, Monarch Airlines, Virgin Atlantic and Airtours International Airways, companies that form the Airline group, will hold 46% of the shares in NATS, body that enjoys a statutory monopoly; the British government will hold 49% the remaining 5% will belong to employees. The British government considers Airline as a strategic partner that will be responsible for the management, the investment programme and the development of new activities.
In its investigation, the Commission worked toward determining if the grouping of seven airlines with NATS risk raising competition problem on the market located upstream from the air traffic services, in particular the services provided "on route" and in the airports. With regard to the service provided "on route", it concluded that the operation would not have as effect to create or enhance a dominant position, NATS being a natural monopoly. With regards to the services provided in the airports, the Commission feels that the fact that the seven airlines will be shareholders in NATS will not enable them to have influence over the future choices of airport operators and thus will not enhance the position of NATS.
With regard to the various markets for air transport services, the Commission sought to determine whether the participation of the seven airlines in the provision of core services does not risk conferring upon them an excessive power that they could use to influence prices paid by their rivals or over the quality of the services they receive. Be it the services provided in airports, at takeoff, landing or in flight, it concluded that a certain number of factors limit the ability of Airline from carrying out discriminatory tariff practices. As for the discrimination outside the area of prices, the investigation showed that even if NATS has a potential in the matter, its practices would not be sufficiently discriminatory to raise competitive concerns in the downstream markets. The Commission will nevertheless consider the need to develop adequate safeguard measures and to avoid conflicts of interest between the air traffic control managers and the beneficiaries of these services, while drafting legislative measures in the framework of its initiative relating to a "single sky".