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Image header Agence Europe
Europe Daily Bulletin No. 9885
Contents Publication in full By article 14 / 38
GENERAL NEWS / (eu) eu/competition

Commission investigates cooperation practices of airline alliances

Brussels, 20/04/2009 (Agence Europe) - The European Commission has decided to open two investigations concerning certain airlines belonging to the "Star Alliance" and "OneWorld". These investigations will focus on current or planned cooperation agreements between four members of Star Alliance (Air Canada, Continental, Lufthansa and United) on the one hand and on a planned agreement between the three members of OneWorld (American Airlines, British Airways and Iberia) on the other. The Commission will look into the commercial practices of these airlines in the framework of their commercial and operational agreements on transatlantic routes (mainly between the EU and North America). The scope of the investigation into practices carried out by the member airlines of Star Alliance will look at existing cooperation between Lufthansa and United and between Lufthansa and Air Canada, and planned cooperation between them and Continental.

For both of these investigations, the degree of cooperation between the airlines in question appears to be far higher than with the other airlines of the same alliance, the Commission observed in a press release published on Monday 20 April. Amongst other things, it notes that these airlines wish to manage timetables, capacities, pricing and revenue on transatlantic routes, and to share revenue and sell tickets on these routes without preferences between these carriers. The Commission aims to determine whether these practices have led to competition restrictions and whether this specific kind of cooperation within alliances has genuinely benefited consumers. The opening of an investigation does not prejudge the decision to be taken. If the airlines are found to be guilty, they will be liable to a fine which could represent up to 10% of their annual global turnover. (A.B./transl.)

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