The UK Competition and Markets Authority (CMA) is currently investigating the Atlantic Joint Business Agreement (AJBA), which involves five major airlines: British Airways, Iberia, Aer Lingus, American Airlines, and Finnair. This agreement allows these airlines to collaborate on various aspects of their operations, including pricing and scheduling, rather than competing directly.

Initially reviewed by the European Commission in 2010, the AJBA's commitments were accepted for a decade. As these commitments were nearing expiration, the CMA began its investigation in 2018. The COVID-19 pandemic led to interim measures being imposed, extending the previous commitments for an additional five years. With the airline sector recovering, the CMA has now reviewed the AJBA and is considering a new set of commitments proposed by the airlines.

The proposed commitments would require American Airlines and British Airways to provide take-off and landing slots to competitors on three key routes: London-Boston, London-Miami, and London-Chicago. This would enable rival airlines to apply for these slots at London’s Heathrow and Gatwick airports, thereby increasing competition and potentially lowering fares for travelers. The availability of these slots is crucial, as they are typically hard to obtain due to strict minimum use criteria.

Additionally, the commitments would mandate that British Airways and American Airlines carry a minimum number of local passengers on the London-Dallas route each year. This measure aims to maintain service levels and keep prices in check. The commitments also include provisions to support competing airlines on the three key routes, such as preferential access to connecting passengers.

Juliette Enser, Executive Director of Competition Enforcement at the CMA, emphasized the potential benefits of airline alliances while acknowledging the competition concerns associated with the AJBA. The CMA is currently consulting on these commitments, inviting feedback from interested parties before making a final decision.