EU keurt fusie British Airways en Iberia onder voorwaarden goed (en)
EUOBSERVER / BRUSSELS - The European Commission on Wednesday (14 July) gave the final go-ahead for British Airways and Iberia to merge, a cost-cutting move the firms hope will help them survive the industry's current hard times.
Brussels also gave the all-clear for the companies to increasingly team up with OneWorld partner American Airlines, as all sides look to benefit from the recent liberalisation in trans-Atlantic aviation.
A number of legally-binding concessions made by the carriers were sufficient to persuade the EU watchdog to drop its investigation, launched in April 2009.
"Today's decision will enable the airlines to put in place the transatlantic alliance they have long aspired to while ensuring that the around 2.5 million passengers ... continue to benefit from a choice of frequencies and competitive prices," said competition commissioner Joaquin Almunia.
The Iberia-BA merger will create Europe's third-largest airline, behind Lufthansa and KLM-Air France, but the two sides plan to keep their existing brand identities.
Executives say the deal will create vital savings of roughly €400 million a year by the fifth year, as the two companies struggle to stave off increasing pressure from Europe's no-frills airlines.
Data show that penny-pinching travelers across the union are increasingly looking to the budget options in a bid to make their own savings.
Increased co-operation between the merged firm and American Airlines would see them jointly manage schedules and pricing on flights from Canada, Mexico, Norway, Puerto Rico and Switzerland, as well as the United States.
Upon hearing of the three way tie-up, competitor Virgin Atlantic said the EU decision was "shameful," arguing that the proposals did not address the competitive harm resulting from the deal.
The commission admits that the transatlantic agreement was the harder of Wednesday's two decisions, but says it is satisfied that competition will be maintained.
Clearance was given after the three airlines made a binding promise to cede valuable take-off and landing slots to rivals on routes between London and New York, Boston, Dallas and Miami from next year.