ALAN GEORGE BRUSSELS
After a lengthy period spent focusing on European-US aviation alliances, the European Commission's competition authorities plan to devote more effort to intra-European alliances.
The intra-EU focus follows the EC's setting of conditions on the recent Alitalia/KLM alliance. The Commission ruled that the airlines should reduce frequencies and make slots available when new entrants start operating from Amsterdam to Milan or Rome.
The conditions attached to the merger "go further than most" and point the way forward, says one commission source. The deal "sets a template in respect of other intra-EU alliances", agrees a leading EU lawyer.
The new emphasis on intra-European alliances follows the long delay for approval of transatlantic alliances. "Alliances have moved ahead very speedily and there is a disequilibrium between companies with alliances, especially involving transatlantic alliances, and the tools of the Commission," says the Commission official.
DG-IV, the EC's competition directorate, is currently reviewing the Star alliance. Originally, Brussels was looking at the likely travel behaviour of Star passengers flying from origin airports near to their homes.
But last December Star member airlines argued that this route-specific model for so-called time-sensitive passengers was inappropriate as passengers often used intermediary airports to catch connecting flights. The decision was delayed and is not now expected until mid-2000 at least.
DG-IV is also considering conditions to attach to the Delta/Sabena/Swissair/TAP alliance, the Delta/Air France link and the oneworld marketing alliance.
Source: Airline Business
