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by Helen Young August 31st, 2008
A deal that American Airlines has made with Iberia and British Airways is now going to be probed by the European Commission, according to the Associated Press on Friday. They say that as part of this investigation, the Commission is going to evaluate if the agreement between the companies bring up any anti-trust problems.
American Airlines made an announcement earlier in the month that they have reached a deal in order to strengthen their business partnership with Iberia and British Airways under a one-world global travel program. This deal, of which requires approval from European Union regulators and the Department of Transportation in the United States, will expand the relationship between the 3 carriers, which will allow them to share their revenue, as well as make decisions for flight schedules, marketing, and other related issues of the business without coming across antitrust issues.
Their proposed revenue sharing deal stipulates that AMR Corp., which is the parent of American Airlines, is to cooperate with British Airways and Iberia with commercial flights between Norway, Switzerland, the European Union, Canada, Mexico, and the United States. In spite of the international partnership, which is anticipated to develop 443 potential destinations across 106 countries, having 6,300 departure options everyday, which will be operated by the companies as separate entities.
A spokesperson for American Airlines, when contacted, said that this is routine for possible alliances to be review by the European Union. It is also within their purview, the spokesperson added, and the same thing has been done by them with other alliances receiving anti-trust immunity.
Learn more at: www.americanairlines.com