Competition on three major transatlantic routes between the UK and the US is set to rise after an investigation by the UK’s Competition & Markets Authority (CMA).
The CMA’s investigation focused on the Atlantic Joint Business Agreement (AJBA), a long-standing arrangement allowing five airlines—British Airways, Iberia, Aer Lingus, American Airlines, and Finnair—to coordinate their transatlantic operations, including pricing and scheduling.
In a statement, the CMA revealed that British Airways and American Airlines had agreed to offer flight slots to competitors at London Heathrow or London Gatwick for routes to Boston, Chicago, and Miami.
The airlines also promised to ensure a “minimum number” of non-connecting passengers on the London-Dallas route. The CMA said this would prevent a reduction in services and help keep prices competitive.
The CMA stated that it plans to accept these commitments, pending a standard consultation period open for feedback until April 23.
“Slots at these two London airports are highly sought after,” the CMA noted. “Airlines holding these slots are required to meet minimum use criteria each year, making these slots rarely available. However, the commitments will reduce this barrier, allowing more competition from other airlines on the UK-US routes.”
In addition to the slot commitments, AJBA members will also offer “preferential terms” for rival airlines to access connecting passengers on the London-Boston, London-Chicago, and London-Miami routes.
Juliette Enser, CMA’s executive director of competition enforcement, commented: “Airline alliances can bring wider economic benefits, such as better connectivity and new services. However, we have concerns about the impact of the AJBA on key UK-US routes. Accepting these commitments will address these issues, protect passengers, and allow the AJBA to continue operating while promoting competition.”
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