EC warns three airlines over tie-up plans

The European Commission has told British Airways, American Airlines
and Iberia that they may have to give up take-off and landing slots
to be allowed to press ahead with a transatlantic tie-up, the FT
reported on Monday. The Financial Times, which cited documents
relating to the matter, reported that the EC said an agreement
between the three groups was "likely to result in appreciable
competitive harm" on seven Europe-US transatlantic routes. The EU's
competition regulator "envisages issuing a decision finding that the
series of agreements signed have been in breach" of competition laws
and would order that the " infringements" are ended, the financial
daily added. "Remedies may include ... the transfer of airport
slots" to rival airlines, the EC added, according to the documents
obtained by the FT. The three airlines revealed on August 14 last
year that they had signed an agreement to cooperate on flights
between North America and Europe to help them to overcome soaring
fuel costs and falling demand.