Commission investigates certain code-sharing agreements between EU operating airlines

On 11 February, the European Commission opened two own initiative investigations to verify whether code-share agreements between four companies operating in the European Union complies with EU competition rules. The investigations relate, in particular, to the agreements between Deutsche Lufthansa  and Turkish Airlines in one case, and, in the second case, between TAP Portugal and Brussels Airlines.

The Commission has started formal antitrust investigations into code-sharing agreements between, on the one hand, Lufthansa and Turkish Airlines and, on the other hand, Brussels Airlines and TAP Air Portugal. The agreements allow the carriers concerned to sell as many seats on their partner's flights as they want (free-flow), as long as there are seats available, on routes connecting their hubs. This is different from another common form of code-sharing whereby a company sells seats on a partner's flights on routes it does not operate itself in order to extend the reach of services and broaden the choice for customers.

These investigations focus on a particular type of code sharing arrangement where these airlines have agreed to sell seats on each others' flights on the Germany-Turkey routes and on the Belgium-Portugal routes, where both companies already operate their own flights between their own hubs and should, in principle, be competing with each other.

The Commission considers that this form of free-flow code, parallel, hub-to-hub code share agreements may distort competition leading to higher prices and less service quality for customers on routes between Germany and Turkey and between Belgium and Portugal, respectively. However, an initiation of proceedings does not imply that the Commission has conclusive proof of an infringement, but that it will investigate the case as a matter of priority.