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KPMG: Airline industry heavily constrained by historic regulatory rules - needs alliances

3-Nov-2009 9:51 AM

KPMG Global Chair for Transport and Infrastructure, Dr Ashley Steel, expressed support (29-Oct-2009) for the proposed business agreement between British Airways, American Airlines and Iberia, stating the airline industry continues to be heavily constrained by historic regulatory rules that urgently need to be relaxed. [more]

KPMG: “The proposed transatlantic alliance makes huge sense for passengers and airlines alike. It will allow participating airlines to spread their cost base, something they desperately need to do in this challenging environment. This has to be in the shareholder and passengers’ best interest if schedules and fare levels are to be maintained... Policymakers need to put aside their ‘national interest’ concerns about airlines and accept that carriers will have to cooperate in order to survive whilst of course avoiding monopolistic development... Two other alliances, Star Alliance and SkyTeam, have already been given antitrust immunity by the US Department of Transportation. Therefore it makes sense to grant immunity...It will put the alliance on a similar footing platform to Star and SkyTeam and enable it to compete globally,” Dr Ashley Steel, Global Chair for Transport and Infrastructure. Source: KPMG, 29-Oct-2009.