JAA and FAA Harmonization
News released by www.asap.co.uk
The tie-up of operations between British Airways, Iberia and American Airlines has finally received approval from the United States Department of Transportation (DoT). This comes after the European Commission also approved the joint venture, paving the way for an alliance that will see the carriers cooperating on fare prices and schedules to benefit passengers and to save the companies’ money.
After trying to get a tie-up approved for the past 14 years and being refused on two previous occasions, the DoT has seen that this joint venture will give passengers many benefits. This will include cheaper fares, new nonstop routes and improved schedules. They have put in place many conditions that will preserve competition and protect travelers. Susan Kurland, the secretary of Aviation and International Affairs for the department, says that the tie-up won’t greatly eliminate or even reduce competition, nor will it be adverse to public interest.
British Airways chief executive Willie Walsh is grateful and very pleased with the decision. He says that it’s great news for all of them, as well as the Oneworld Alliance, for which the 3 carriers are members. They have waited 14 years to offer the benefits of a transatlantic joint business to customers and for the playing field to be level between their alliance and the other 2 worldwide alliances. The 2008 liberalization of Heathrow Airport further opened an already very competitive European-United States market, he added, and they are happy regulators have recognized this.
The approval of this joint venture isn’t coming without some sacrifice. As part of the deal, British Airways and American Airlines have to surrender 8 landing and takeoff slots at the busiest airport in Europe, Heathrow.