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8/30/08

The Guardian: Airlines: BA's transatlantic alliance under scrutiny from EU

For the complete report from The Guardian click on this link

Airlines: BA's transatlantic alliance under scrutiny from EU

The planned transatlantic tie-up by British Airways, American Airlines and Spain's Iberia is being investigated by the European commission, it emerged yesterday. The commission could use its powers to unwind the joint business agreement denounced by Sir Richard Branson's Virgin Atlantic as a "monster monopoly" and fine the three companies for restrictive business practices. It is understood that the commission's preliminary investigation has been under way since July - a month before the three airlines announced their deal - and was not, therefore, prompted by any complaint.

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