Beginning of the end to code-sharing ... ?
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Beginning of the end to code-sharing ... ?
EU press release here.
It's about time that DG-COMP had a look at these agreements. While not all have an anticompetitive effect some do.
European Union antitrust regulators have sent Brussels Airlines (LHAG.DE) and TAP Portugal a statement of objections over their code-sharing on the Brussels-Lisbon route because they believe it restricts competition between the two airlines.
The European Commission said it had concerns that the two airlines pursued an anti-competitive strategy on the Brussels-Lisbon route by discussing a capacity reduction, granting each other unlimited rights to sell seats on each other's flights and aligning their ticket prices.
"We are concerned that in this particular case Brussels Airlines and TAP Portugal may have used their codeshare to restrict competition and harm passengers' interests on the Brussels to Lisbon route," said Margrethe Vestager, the EU's competition commissioner.
The European Commission said it had concerns that the two airlines pursued an anti-competitive strategy on the Brussels-Lisbon route by discussing a capacity reduction, granting each other unlimited rights to sell seats on each other's flights and aligning their ticket prices.
"We are concerned that in this particular case Brussels Airlines and TAP Portugal may have used their codeshare to restrict competition and harm passengers' interests on the Brussels to Lisbon route," said Margrethe Vestager, the EU's competition commissioner.
