The alliance between Air France and Alitalia is the latest to be granted a six-year antitrust immunity by the European Commission (EC). After lengthy discussions with Brussels, the two carriers have agreed to surrender up to 42 pairs of slots a day at French and Italian airports, including 19 pairs at Paris Charles de Gaulle and Orly.
Air France and Alitalia first announced their co-operation deal in August 2001. After examining it, the EC said it raised serious competition problems between France and Italy, particularly on routes from Paris to Milan, Rome, Venice, Florence, Bologna and Naples, and between Milan and Lyon.
Although the EC has set a hard number for slot surrender, it acknowledges that, in reality, fewer may have to be returned given that several competitors have already emerged on some routes since the alliance was announced. The tie-up will enable Air France and Alitalia to co-operate across their networks in terms of pricing, schedules and capacity.
The EC has granted similar six-year immunities over the past few years to alliances involving Lufthansa and Austrian Airlines, British Airways and SN Brussels and between BA and Iberia.
According to EC competition commissioner Mario Monti, the decision shows that the "European Commission does not stand in the way of consolidation, provided that the competition concerns, when they exist, are addressed in a satisfactory way".
Source: Airline Business
