The European Commission confirmed that in September 2009 it has sent a Statement of Objections to British Airways, American Airlines and Iberia, members of the oneworld airline alliance, in relation to their proposed cooperation on passenger air transport services on transatlantic routes which the Commission considers may be in breach of European rules on restrictive business practices. The procedure was opened formally in April 2009.

The Commission's Statement of Objections concerns agreements concluded between British Airways, American Airlines and Iberia, regarding the coordination of the parties' commercial, operational and marketing activities in relation to passenger traffic on transatlantic routes (principally routes between the EU and North America). Pursuant to these agreements, the parties intend to jointly manage schedules, capacity and pricing, as well as share revenues on transatlantic routes between North America (Canada, Mexico, US and Puerto Rico) and Europe (EU, Norway and Switzerland).

Other airline alliance investigations

This is not the only airline alliance that the Commission services are investigating. Parallel investigations into the proposed cooperation between four Star Alliance members (Lufthansa, Continental, United and Air Canada) and that between Skyteam members (Air France/KLM and Delta/Northwest) are still ongoing.

What is a Statement of Objections?

A Statement of Objections is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them. The addressee of a Statement of Objections can reply in writing to the Statement of Objections, setting out all facts known to it which are relevant to its defence against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case.

The Commission may then take a decision on whether the conduct addressed in the Statement of Objections is compatible or not with the EC Treaty's antitrust rules. Sending a Statement of Objections does not prejudge the final outcome of the procedure.

The antitrust area covers two prohibition rules set out in the EC Treaty.

• First, agreements between two or more firms which restrict competition are prohibited by Article 81 of the Treaty, subject to some limited exceptions. This provision covers a wide variety of behaviours. The most obvious example of illegal conduct infringing Article 81 is a cartel between competitors (which may involve price-fixing or market sharing); For more information on cartels see the cartels section.
• Second, firms in a dominant position may not abuse that position (Article 82 of the EC Treaty). This is for example the case for predatory pricing aiming at eliminating competitors from the market.