Kevin O'Toole/LONDON
The European Commission's (EC) alliance proposals have been given a broad welcome by the UK, despite concern over some "significant" gaps, but they have met fierce criticism in Germany, where the conditions have been dismissed as "unacceptable".
John Bridgeman, director of the UK's the Office of Fair Trading (OFT) competition watchdog, endorses the broad sweep of the proposals for the American Airlines/ British Airways alliance. However, in a letter to UK trade and industry secretary Peter Mandelson, he points to "some significant" decisions to be taken over the mechanism for distributing the 267 slots to be freed at London Heathrow and Gatwick airports.
Bridgeman highlights "inconsistencies" in the criteria to be used for slot redistribution, and gaps in the mechanism for handling the process. "This is an important issue which remains unresolved," he says. The EC suggests the existing London slot co-ordinator, ACL, should handle the allocation, but the company has already "-expressed doubts about its ability to undertake this process", he says.
He repeats the original OFT view that BA should be allowed to sell its slots, although he acknowledges that EC competition commissioner Karel van Miert is "-strongly opposed to this approach".
There is a further suggestion that American/BAmay not have to give up the full number of slots cited if rivals can mount services using existing slots. Bridgeman says he understands that such slots "-will count towards the total". Mandelson, who broadly supports the EC, has asked for comments on the OFT views by 4 September.
German transport minister Matthias Wissmann warns, however, that the proposals will "-weaken European competitiveness", while opening the door for US carriers to dominate. "This is unacceptable and not a basis for constructing an open transatlantic air transport market," he says.
Source: Flight International
