Oneworld members British Airways, American Airlines and Iberia won EU antitrust clearance on Wednesday to deepen their pact after agreeing to cede some lucrative trans-Atlantic routes.
The European Commission, the EU competition watchdog, also unconditionally cleared British Airways' merger with Spain's Iberia.
The Oneworld members want to broaden their pact to take advantage of the "Open Skies" agreement between the United States and the European Union, which liberalises trans-Atlantic aviation.
The Commission said the carriers' concessions, which are legally binding, were sufficient to ease competition concerns and that it was dropping its investigation launched in April last year.
"Today's decision will enable the airlines to put in place the trans-Atlantic alliance they have long aspired to while ensuring that the around 2.5 mln passengers … continue to benefit from a choice of frequencies and competitive prices," Competition Commissioner Joaquin Almunia said in a statement.
British Airways shares were up 0.3% at 1304 GMT and Iberia 0.6% firmer, outperforming a 0.6% lower Stoxx 600 travel and leisure index.
British Airways welcomed the EU clearance, saying U.S. regulators are expected to issue a final decision on antitrust immunity shortly and that the airlines planned to launch their trans-Atlantic joint business in the autumn.
Two sources with direct knowledge of the matter told Reuters on July 9 that the Commission would clear the deal.
The three carriers agreed to cede some landing and take-off slots for routes between London and Dallas, Boston, Miami and New York.
Other concessions include allowing access to their frequent-flyer programmes on those routes and submitting data on their cooperation plan to the Commission. The commitments are for 10 years.
SHAMEFUL
Virgin Atlantic called the EU decision "shameful", saying the proposals did not address the competitive harm resulting from the three-way tie-up.
Online travel service travelsupermarket.com said the regulatory decisions would benefit consumers.
"Should these projects take off, it will be great news for travellers and will potentially see more affordable fares, better connections and improved service in the air and on the ground on both European and the important transatlantic routes," Bob Atkinson from the service said.
The Commission said the combined British Airways and Iberia would not significantly impede competition in the European Economic Area.
The U.S. Department of Transportation in February tentatively allowed the three airlines antitrust immunity on trans-Atlantic routes.
Star Alliance, which includes Lufthansa and United Airlines, and SkyTeam, with members Air France and Delta, have already been granted U.S. antitrust immunity.
Almunia, who is now probing some members of these proposed alliances, said the investigation on the Star Alliance was going to end before that for SkyTeam.
