The European Commission said today it had closed antitrust probes into two major airlinealliances, saying their benefits to consumers outweighed anycompetition concerns.
The Commission had examined, but never actually suspended,the Wings alliance between KLM and Northwest Airlines and theStar alliance between Lufthansa, SAS and United Airlines.
"I am happy that we were able to bring these investigationsto a successful end," Competition Commissioner Mr Mario Monti said.
"Airline alliances generally present benefits for theconsumer but regulators must ensure that they do not result inthe elimination of competition on specific routes," he added ina statement.
On the Star Alliance, the Commission said its fears wereallayed when the three partners offered to surrender slots atFrankfurt airport.
In 1998 the EU body said it had serious concerns about thealliance's domination of routes between Frankfurt andWashington, Chicago, Los Angeles and San Fransisco where it hadbetween 56 and 95 percent of the market.
But competition was now growing due to slots becomingavailable to other airlines and because of pledges by Germanynot to impose regulatory barriers to new entrants, theCommission said.
On the Wings Alliance, the Commission had been concernedabout its market domination on routes between Amsterdam andDetroit and Minneapolis/St Paul. But it was now satisfied therewas enough competition from airlines on indirect routes.
"Like the Star alliance, the KLM-Northwest agreement alsobrings benefits for consumers in terms of increased frequenciesand reduced fares," the Commission said.