MarkD
26th Jul 2002, 15:52
http://breaking.examiner.ie/2002/07/26/story61453.html
26/07/2002 - 4:02:18 pm
The European Commission will require Deutsche Lufthansa AG to give up slots between Frankfurt and 4 US cities, as well as forcing proposed tie-up partners United Airlines, Lufthansa and Scandinavian Airlines System to open up their frequent flyer programme to competing new entrants, AFX News has learnt from sources close to the case who have read the EU's report.
The three partners must also make interlining concessions to secure approval of their transatlantic alliance.
Lufthansa's slot concessions out of Frankfurt to Chicago, Los Angeles, San Francisco and Washington are the extent of the commission's requirements in this area after it dropped a previous requirement for SAS to concede slots out of Copenhagen.
According to the source, the commission has accepted SAS's argument that there is already an acceptable level of competition out of the region, and that there are no barriers to new entrants due to an existing surfeit of slots.
Lufthansa, SAS, and UAL Corp unit United will all be required to open up their frequent flyer programmes to new entrants by enabling them to become part of the programme, said the source. This will enable new entrants to compete with the established players on an equal footing from the start.
"If say a new entrant starts to fly on Frankfurt-Chicago for example but has no frequent flyer programme of its own, then it would be difficult for them to compete. The EU Commission remedy for this is that the new entrant can go to United, SAS or Lufthansa and say I want my customers to be able to join your frequent flyer programme and they would have to accept such a request" said the source.
As such, passengers flying with a new rival entrant would be accumulating points with United Airlines, Lufthansa and SAS.
As for the interlining concessions: "The EU Commission require combined tickets so that for a new entrant flying say Frankfurt-Chicago, it must be possible for travel agents to sell a round trip involving flying United, SAS or Lufthansa in one direction, and back with the new entrant in the other," said the source.
The EU Commission is set to present its report on the alliance next week.
26/07/2002 - 4:02:18 pm
The European Commission will require Deutsche Lufthansa AG to give up slots between Frankfurt and 4 US cities, as well as forcing proposed tie-up partners United Airlines, Lufthansa and Scandinavian Airlines System to open up their frequent flyer programme to competing new entrants, AFX News has learnt from sources close to the case who have read the EU's report.
The three partners must also make interlining concessions to secure approval of their transatlantic alliance.
Lufthansa's slot concessions out of Frankfurt to Chicago, Los Angeles, San Francisco and Washington are the extent of the commission's requirements in this area after it dropped a previous requirement for SAS to concede slots out of Copenhagen.
According to the source, the commission has accepted SAS's argument that there is already an acceptable level of competition out of the region, and that there are no barriers to new entrants due to an existing surfeit of slots.
Lufthansa, SAS, and UAL Corp unit United will all be required to open up their frequent flyer programmes to new entrants by enabling them to become part of the programme, said the source. This will enable new entrants to compete with the established players on an equal footing from the start.
"If say a new entrant starts to fly on Frankfurt-Chicago for example but has no frequent flyer programme of its own, then it would be difficult for them to compete. The EU Commission remedy for this is that the new entrant can go to United, SAS or Lufthansa and say I want my customers to be able to join your frequent flyer programme and they would have to accept such a request" said the source.
As such, passengers flying with a new rival entrant would be accumulating points with United Airlines, Lufthansa and SAS.
As for the interlining concessions: "The EU Commission require combined tickets so that for a new entrant flying say Frankfurt-Chicago, it must be possible for travel agents to sell a round trip involving flying United, SAS or Lufthansa in one direction, and back with the new entrant in the other," said the source.
The EU Commission is set to present its report on the alliance next week.