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13-May-2015 11:40 AM

European Commission accepts anti-trust proposals from Air France-KLM, Alitalia and Delta Air Lines

European Commission adopted (12-May-2015) a decision rendering commitments made by Air France-KLM, Alitalia and Delta Air Lines to "lower barriers to entry or expansion" on their Amsterdam-New York, Paris-New York and Rome-New York services legally binding for a period of ten years. European Commission stated: "To address these concerns, the companies have jointly offered a set of commitments aimed at enabling competing airlines to start operating or extend existing operations on the routes in question, by lowering barriers to entry or expansion. In Oct-2014, the Commission consulted stakeholders on these commitments. In light of the results of the market test, the parties proposed some modifications and clarifications to the initial commitments." The carriers committed to:

  • Make available landing and take-off slots at Amsterdam, Rome and/or New York airports on the Amsterdam-New York and Rome-New York routes;
  • Enter into fare combinability agreements which would enable competitors to offer tickets on the parties' flights on the three routes;
  • Enter into special prorate agreements which would facilitate access to the parties' connecting traffic on the three routes;
  • Provide access to their frequent flyer programmes on all three routes;
  • Allow passengers of competitors who have no equivalent frequent flyer programme to accrue and redeem miles on the parties' frequent flyer programmes;
  • Submit data concerning their cooperation, which will facilitate an evaluation of the alliance's impact on the markets over time.

An independent trustee will monitor the carriers' compliance with these commitments. European Commission commissioner in charge of competition policy Margrethe Vestager said: "Airlines can cooperate to enlarge their network if it makes them more efficient and allows them to better serve their passengers. With today's decision I want to ensure that passengers flying from Paris, Amsterdam or Rome to New York continue to benefit from competitive prices and choice. We have now concluded our reviews of the three major worldwide airline alliances - and are one step closer to a genuine level playing field in transatlantic aviation markets." [more - original PR]

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