Kevin O'Toole/LONDON
Europe's major carriers have led an attack on the airline-competition policy coming from the European Commission (EC) - which is studying a series of global alliances - with claims that new entrants are being unfairly promoted at their expense.
The attack came during a meeting on 19 January between EC competition commissioner Karel Van and a delegation from the Association of European Airlines (AEA), led by its new chairman, Lufthansa head Jürgen Weber.
The aim was to breach what the AEA believes to be a growing gap between EC ambitions to promote new entrants within the region, and what the major airlines perceive as their need to build up international hubs to fend off global competition.
"We cannot be expected to be weak in our home markets and, at the same time, act as world-class players in global competition," says Weber, arguing that Van Miert should not seek to impose new rules, but should act as a "referee" ensuring fair competition.
Van Miert is studying the European transatlantic alliances, including the British Airways, KLM, Lufthansa and Swissair deals, with initial findings expected to be passed on to national governments by around the end of February.
Although the AEA airlines emerged from the meeting admitting that there were few signs of a fundamental change of heart from Van Miert, the carriers say that there has been some thawing of relations with the EC.
BA, whose chief executive, Bob Ayling, attended the meeting, has been hinting at a more "constructive" discussion over its American Airlines alliance, now delayed for 18 months. The surrender of slots at London Heathrow Airport is still central, but there have been signs of a compromise between the 168 a week requested by the UK authorities and the 350 originally outlined by Van Miert. A consensus is emerging that the final number to be sacrificed by the alliance will be in the region of 250-270.
A highly placed EC official also warns that Van Miert will "-certainly ask for a reduction or freezing of frequencies" on key North American routes. American and BA will also be barred from co-operating on major routes where they dominate the business-travel market.
Further optimism has come from revised forecasts by aviation analyst Chris Tarry at the Dresdner Kleinwort Benson investment bank, over the impact of slot confiscation. Tarry had warned of massive profit penalties from a sudden handing of slots to competitors, but now believes that there may be a more gradual handing over of slots as and when they are required by new competitors.
On this more-gradual basis, he believes that the American-BA alliance could hope to see modest growth resume on North Atlantic revenues within as little as 12 months of the deal being put into operation.
Source: Flight International
