British Airways Competition Probe

Published: 21/05/07

Long haul fuel surcharges are facing an investigation, for which British Airways are allocating around GBP 350 million as a contingency fund. The airline had acknowledged last year that there had been communications with their competitors which, under the terms of their policies should not have taken place, hence the contingency fund being put in place.

An investigation, a collaboration between the European Commission, US Department of Justice and the Office of Fair Trading, is to look at long haul surcharges, an area of British Airways business that has been extremely profitable so far, with their flights to New York being a cornerstone of their revenue.

The Chief Executive of British Airways has confirmed that the airline wishes to further develop this area of the business by applying to the United States authorities to operate flights from any part of the US to anywhere in the EU. This would make the most of the new rulings that apply to transatlantic flights, designed to open up more competitive options for travellers.

It is hoped that these new open sky policies will make a significant difference to both the airlines and the passengers who wish to travel. British Airways have long been a leader in this market, benefiting from their dominant position at Heathrow Airport, where they are a primary provider for transatlantic flights. By opening up more European and US based airports it is possible for other carriers to offer competitive options via nearby airports and if the price difference outweighs the inconvenience for the passenger then it really could be all systems go for these new transatlantic routes.

Author: darrenbevington@googlemail.com