Competition on three key transatlantic routes between the UK and US is set to increase following an investigation by the UK’s Competition & Markets Authority (CMA).
The CMA has been investigating the long-running Atlantic Joint Business Agreement (AJBA), which allows five airlines – British Airways, Iberia, Aer Lingus, American Airlines and Finnair – to work together on their combined transatlantic networks, including on prices and schedules.
In a statement, the CMA said that BA and American Airlines had made commitments to provide slots to rival carriers at London Heathrow or London Gatwick to operate services to Boston, Chicago and Miami.
The two airlines have also promised to carry a “minimum number” of non-connecting passengers on the London-Dallas route, which the CMA said would “protect against a reduction in services on the route and help to constrain prices”.
The CMA said it proposed to accept these commitments from AJBA members subject to a standard consultation process, which will be open for feedback until 23 April.
“Slots at these two London airports are difficult to obtain,” added the CMA. “The airlines that have the rights to them are able to keep them provided they meet the minimum use criteria every year.
“This means these sought-after slots rarely become available – however, the commitments will continue to allow rival airlines to compete on the specific UK-US routes by reducing this key barrier to entry.”
As part of the commitments, members of the AJBA will also support rival airlines on the routes from London to Boston, Chicago and Miami by giving “access to connecting passengers on preferential terms”.
Juliette Enser, the CMA’s executive director of competition enforcement, added: “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.”