2 days Ago By Vyte Klisauskaite
American Airlines and British Airways have committed to resolving competition concerns regarding transatlantic flights between London and the United States. As part of resolving the issues, both American Airlines and British Airways will provide rival airlines with access to highly sought-after slot pairs on several UK-US routes. Balancing competition The UK Competition and Markets Authority (CMA) has recently concluded an investigation into the Atlantic Joint Business Agreement (AJBA), a group of five carriers that cooperate on transatlantic flights.
The five airlines are IAG’s British Airways, Aer Lingus, Iberia, as well as American Airlines and Finnair. In a statement, Juliette Enser, Executive Director of Competition Enforcement at the CMA, said: “Airline alliances can deliver broader economic benefits, such as enhanced connectivity and new services. But the CMA has concerns about the AJBA’s impact on key UK-US routes.
“Accepting these commitments could address those concerns and protect passengers on the routes, including by making it easier for other airlines to compete, and bring our investigation to a close while allowing the AJBA to continue to operate.” The five airlines have proposed several key commitments to address the competition concerns. As part of these efforts, American Airlines and British Airways have agreed to provide competing airlines with access to slot pairs on three major UK-US routes: London to Boston Logan International Airport (BOS): for the London-Boston route, the airlines have agreed to provide a slot pair at Heathrow (LHR) or Gatwick (LGW), allowing up to seven nonstop flights per week London to Miami International Airport (MIA): for the London-Miami route, the carriers have agreed to give access to a slot pair at LHR or LGW, allowing up to seven nonstop flights per week London to Chicago O’Hare International Airport (ORD): for the London-Chicago route, the airlines have agreed to provide a slot pair at LHR or LGW, exclusively for a new carrier, allowing up to seven nonstop flights per week.
The CMA is consulting on the commitments offered by the airlines. Generally, slots at these two London airports are hard to get, as airlines can keep them if they meet the minimum usage requirements each year. As a result, these slots rarely open up.
However, the new commitments will help rival airlines compete on specific UK-US routes by making access to these slots easier. Other airlines serving these three routes The London to Boston route At present, the Delta and Virgin Atlantic joint venture is using two slot pairs, released under the 2022 Interim Measures, to offer nonstop services on the London-Boston route. JetBlue Airways also operates nonstop flights on the same route.
In a notice of its intention to accept the binding commitments offered by the airlines, the CMA stated: “The CMA’s provisional view is that the release of slots facilitating a nonstop competitor service on London – Boston would address the competition concerns it has identified in respect of that route. In particular, this will enable an additional nonstop competitor service to operate compared to a scenario where no remedy slots are available.” The report also added that it is likely competing airlines will take over the slots and use them for year-round nonstop services.
The London to Miami route The Delta and Virgin Atlantic joint venture is using slots from the 2022 Interim Measures to offer nonstop flights on the London-Miami route, directly competing with American Airlines and British Airways. Norse Atlantic Airways also operates year-round nonstop flights without using the 2022 Interim Measures. In addition to the chance for a new airline to apply for a slot, these airlines could increase competition on the route by using a remedy slot, according to the CMA.
The London to Chicago route In addition to American Airlines and British Airways, United Airlines operates the London to Chicago route. The CMA stated in the report: “The ABJ [American Airlines and British Airways – ed. note] has maintained a strong position in the Premium and Non-premium markets, though its market power has been constrained by United.
In this context, the CMA provisionally considers that the slot remedies proposed, which are intended to facilitate new entry, will ensure that there is a sufficient competitive constraint to the AJB on the London – Chicago route.” Airbus’ A321XLR is redefining long-haul travel, linking secondary cities across the Atlantic with efficiency, comfort, and game-changing range..
