Update: UK CMA Weighs Airline Commitments to Address Transatlantic Competition Concerns

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Update: UK CMA Weighs Airline Commitments to Address Transatlantic Competition Concerns

, MT Newswires - 12:21 PM ET 3/28/2025 default

12:21 PM EDT, 03/28/2025 (MT Newswires) -- (Updates with replies from International Airlines Group and American Airlines ( AAL ) in seventh and eighth paragraphs)

The UK's Competition and Markets Authority is consulting on whether to accept commitments from five airlines to resolve competition concerns over their transatlantic cooperation, the regulator said Friday.

British Airways, Iberia, Aer Lingus, American Airlines ( AAL ) , and Finnair coordinate on UK-US flights under the Atlantic Joint Business Agreement.

The proposed commitments would require American Airlines ( AAL ) and British Airways, the only two AJBA airlines operating direct flights on certain routes, to offer flight slots at Heathrow and Gatwick on three key UK to US routes: London to Boston, London to Miami, and London to Chicago.

The commitments would also require them to carry a minimum number of local passengers on the London to Dallas route each year and provide competitors with access to connecting passengers on preferential terms.

Slots at Heathrow and Gatwick are difficult to obtain as airlines retain them if they meet annual usage requirements, making them rarely available. The commitments aim to reduce this barrier, allowing new competition on the affected routes.

The CMA began investigating the AJBA in 2018 as prior commitments imposed by the European Commission neared expiration. Due to the COVID-19 pandemic, the CMA extended key terms for five years. With the airline sector recovered, the regulator is now reviewing the new commitments before making a final decision.

"We have been working constructively with the Competition and Markets Authority throughout this process and we await the completion of the market testing," International Airlines Group, which owns British Airways, Iberia, and Aer Lingus, told MT Newswires.

American Airlines ( AAL ) also assured full cooperation on the review of the AJB, adding the agreement has benefited travelers with cheaper fares and more travel options.

Finnair did not immediately respond to MT Newswires' request for comment.

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