EU approves alliance between BA and Iberia

British Airways  and Spanish airline Iberia  have won a six-year approval to operate a proposed alliance in the European Union…

British Airways  and Spanish airline Iberia  have won a six-year approval to operate a proposed alliance in the European Union, the European Commission announced today.

British Airways and Iberia asked the Commission in mid-2002 for an antitrust exemption so they could share profits, agree on prices, combine sales forces and ground staff and coordinate connecting flights, all on a route-by-route basis.

"The Commission initially had concerns that the alliance would reduce consumer choice and increase prices on a number of routes where the two partners have a strong position," the Commission said in a statement.

The Commission added the firms had successfully resolved the problems and that it had granted the standard six-year exemption.

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