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KPMG: Airline industry continues to be heavily constrained by historic regulatory rules

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29-Oct-2009 Airline industry continues to be heavily constrained by historic regulatory rules that urgently need to be relaxed, says KPMG’s Global Chair for Transport and Infrastructure.

Dr. Ashley Steel, Global Chair for Transport and Infrastructure at KPMG comments on reported antitrust concerns for the proposed alliance between British Airways, American Airlines and Iberia:

"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.

"The airline industry continues to be heavily constrained by historic regulatory rules that urgently need to be relaxed. 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 and SkyTeam, have already been given antitrust immunity by the US Department of Transportation. Therefore it makes sense to grant immunity to BA, American Airlines and Iberia who are all part of the one world alliance. It will put the alliance on a similar footing platform to Star and SkyTeam and enable it to compete globally."