British Airways, American Airlines and Iberia have offered to lease four daily slot pairs for other airlines to use on specified transatlantic routes from London to enable the European Commission to conclude its investigations into their transatlantic joint business. Two more daily slot pairs could be required to be made available should today’s competitive conditions between London and New York change.
The airlines will make available for lease the following slots to enable non-oneworld alliance airlines to operate new services on the following routes:
·2 daily pairs from Heathrow or Gatwick to Boston
·1 daily pair from Heathrow or Gatwick to Dallas Fort Worth
·1 daily pair from Heathrow or Gatwick to Miami
And possibly at some point in the future:
·2 daily pairs from Heathrow or Gatwick to New York should today’s competitive market between London and New York change
The slots can be leased from the airlines’ current slot portfolio and don’t have to be slots currently used on the specified routes. The European Commission has agreed that the airlines should be compensated financially by those airlines wishing to lease slots.
Willie Walsh, British Airways chief executive, said: “We’ve offered to lease slots to gain EC approval for our joint business which will bring benefits to our customers, shareholders and employees. It will also enable oneworld to compete on a level playing field with the other global alliances across the Atlantic.
“We’re pleased that the EC has recognised that we should be compensated for leasing the slots. This reflects the fact that there is an active slots market in London where slots are generally traded for value”.
The EC will now seek the views of interested parties on the airlines’ proposed commitments.
British Airways, American Airlines and Iberia also require US Department of Transportation (DOT) anti trust immunity to operate their transatlantic joint business. The airlines received tentative approval from the DOT in a show cause order published on February 13, 2010. They are reviewing the order and will respond by the timeframe established for comments.
The airlines have welcomed the EU’s announcement that it will be working closely with the US DOT and taking into account its opinion at key points in the regulatory process.
