British Airways, Iberia and American Airlines Set to Give Up Heathrow Slots

Some of the members of the Oneworld alliance, British Airways, Iberia and American Airlines, are volunteering four daily pairs of slots at Heathrow for other airlines to lease. This also seems to be part of a plan to gain the approval of the European Commission on a proposed joint venture on transatlantic routes.

Under this so called proposed joint venture, the airlines will be able to share revenues on routes between Europe and North America. However, the airlines will also be able to cooperate on schedules and pricing without being accused of price fixing.

Right now the group is offering up slots between Heathrow or Gatwick to Boston, Heathrow or Gatwick to Dallas Fort Worth, and Heathrow or Gatwick to Miami. At some point in the future, Heathrow or Gatwick to New York slots would become available as well.

The CEO of British Airways, Willie Walsh, said that they are offering the slots to gain European Commission approval for their joint business. This joint venture will not only be good for customers, but for employees and shareholders as well. It will also enable Oneworld to complete on a level playing field with other global alliances on these Atlantic routes. He went on to say that they are pleased that the European Commission has recognized that they need to be compensated for leasing these slots. This reflects the simple fact that there is an active slot market in London.

The European Commission will now seek the views of interested parties on the airlines’ proposed commitments. Overall, the final choice will be made by the European Commission.