Europe Investigates Trans-Atlantic Airlines

Some of the world's biggest airlines, still recovering from a massive price-fixing scandal in their freight operations, are now facing a similar probe into their passenger business.

European Commission regulators have opened an investigation [pdf] into cooperation agreements struck among the biggest trans-Atlantic airlines, looking to see if the arrangements violate price-fixing laws in the European Union and the European Economic Area.

The authorities are focusing on two partner programs: one embracing United Air Lines, Continental Airlines, Lufthansa, and Air Canada, and another that includes American Airlines, British Airways, and Iberia.

At issue are the degree to which the members of each partner program coordinate their pricing, capacity, and schedules, as well as how they divide up revenue on shared flights. Too much coordination could be interpreted as price fixing and be subject to antitrust law penalties.

by Mark Stein