BA 'may lose take-off, landing slots' over Oneworld tie-up

LONDON (AFP) - The European Commission told British Airways, American Airlines and Iberia that they may have to give up take-off and landing slots to press ahead with a transatlantic tie-up, the FT reported on Monday.

According to the paper, the EC believes an agreement between the three airlines is "likely to result in appreciable competitive harm" on seven Europe-US transatlantic routes.

The EU's competition regulator "envisages issuing a decision finding that the series of agreements signed have been in breach" of competition laws and would order that the "infringements" are ended, the paper said.

"Remedies may include ... the transfer of airport slots" to rival airlines, the EC said, according to the documents obtained by the FT.

The three airlines revealed on August 14 last year that they had signed an agreement to cooperate on flights between North America and Europe to help them to overcome soaring fuel costs and falling demand.

A British Airways spokesman said the group did not believe it needed to give up valuable take-off or landing slots.

"We don't believe that this is necessary given the number of airlines flying between the EU and US, the number of new entrants flying to the US from Heathrow post 'open skies' and the growing capacity of Madrid airport," he said, referring to a 2008 accord which ended limits on which airlines can fly between Europe and the United States.

At the start of October, the European Commission had warned BA, AA and Iberia over the deal which it said could breach anti-trust rules.

The regulator sent a "statement of objections" to the three companies, which are all members of the Oneworld airline alliance.

The BA spokesman said the group would respond to the EU's statement of objections in early November.