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US Gives Final OK For Aer Lingus To Join Transatlantic Joint Venture

Published on Dec 23 2020 2:14 PM in General Industry tagged: Aer Lingus

US Gives Final OK For Aer Lingus To Join Transatlantic Joint Venture

Aer Lingus has received final US approval to join a transatlantic joint venture with other major airlines.

In November, the US Transportation Department granted tentative approval for Aer Lingus to join the venture, which consists of American Airlines, British Airways, OpenSkies, Iberia and Finnair.

The announcement will give the joint venture control of more than half of the US-Ireland passenger flight market. The approval will integrate Aer Lingus into the venture's network planning, pricing and sales.

Aer Lingus did not immediately comment.

Aer Lingus controls 44% of the US-Ireland flight market, a figure that will rise to 60% for the alliance.

In 2015, International Consolidated Airlines Group (IAG), which is the parent company of British Airways, Iberia and OpenSkies, acquired Aer Lingus. The group petitioned in 2018 to allow Aer Lingus to join the alliance.

Despite the alliance's majority market share, the US regulator noted steps that it said will support competition.

As a condition of approval, the department proposed that the venture maintain commitments to release landing and takeoff gate slots at London airports to competitors. Those were imposed when the alliance was first approved in 2010.

In addition, the Transportation Department noted the presence of a strong competitor outside the alliance. It said that the second-largest carrier in the Irish-US market, low-cost airline Norwegian, "has shown an aggressive ability to challenge established carriers in the transatlantic market with its low-fare pricing model."

Fewer Seats And Lower Costs

The department also argued that new aircraft models will allow airlines to fly transatlantic routes with fewer seats and lower costs.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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