21 September 2009

EC To Rule Soon on BA/AA

The European Commission is due to rule some time in the next few weeks on the British Airways and American Airlines (oh yes don't forget Iberia) Transatlantic Alliance.

I find it curious that so far the regulatory bodies have not taken too hard a look at this. Well maybe they just might.

With US Congress seemingly leaving this as unfinished business - and therefore tacitly approving the arrangement - it may all be up to the Commission to make a stand on the subject.

However it would not be a done deal. In April this year the Commission announced that it was going to investigate Transatlantic Alliances. So even if they rule this week - as we have seen with the issues of Lufthansa and their various expansionist moves, they can go back and do more investigation.

Frankly I would be really surprised if the Commission allows the arrangement to go through without a further extension of their investigation.

So let's see what happens next... it could be interesting.

Cheers

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