EU approves BA merger with Iberia

Cheapflights Media, the international flight deals publisher, believes that the EU announcement today granting transatlantic routes antitrust approval for the One World airline alliance will benefit consumers.

BA, Iberia and American Airlines (together with Finnair and Royal Jordanian Airlines) are part of the One World alliance. The antitrust decision allows the main trio of airlines to broaden their pact to take advantage of the US/EU “Open Skies” agreement, which liberalises transatlantic aviation.

Today’s announcement potentially puts One World on a level footing with the competing Star and Sky Team alliances which already have antitrust approval from the US and EU for transatlantic routes. It is widely expected that the US Department of Transport approval will also be received soon and subject this approval the joint venture will begin to operate this Autumn.

No preconditions for the approval have been announced. However BA, Iberia and American Airlines Heathrow/Gatwick slots may be required to be given up only if competitor airlines are unable to acquire slots through the normal allocation process.

BA believe that the approval will provide customers of One World with greater access to discounted fares, smoother connections and more benefits for frequent flyers. The alliance members can also rationalise their schedules on routes so that their individual schedules complement each other; also where cost savings are achieved these could be used to reduce fares when competing with non-One World airlines.

The EU have also approved the expected merger of BA with Iberia. This will also give BA access to the South American routes that the Spanish airline has traditionally dominated. Commenting Francesca Ecsery, Cheapflights Global Sales Director said: “The EU decision puts the One World alliance on a level playing field with the Star and Sky Team member airlines. There are solid grounds for believing that the ATI will benefit not only the airlines involved but also more importantly consumers as well.”

Cheapflights Media’s CEO Chris Cuddy added: “Cheapflights applauds the EU’s decision to open transatlantic routes to the One World alliance and to allow the BA/Iberia merger. This move helps keep the EU airline industry competitive for travellers, which is good for everyone.”

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