If Open Skies ever goes through, this is what we'll face, a corrupt political system intent on the demise of the commercial carrier workers. Both sides of the Atlantic will be involved to further drive labor costs down. Open Skies won't level the playing field, but will tilt it, not in favor of the Europeans, but in favor of increasing multinational corporations that have no geographic boundaries.
LONDON, June 23 (Reuters) - British Airways faces fines of up to 300 million pounds ($549 million) if found guilty of price-fixing in an investigation launched by competition regulators in the UK and United States, analysts said on Friday.
UK and U.S. authorities said on Thursday they had launched a civil and criminal probe into an alleged cartel over air fares and fuel surcharges after raiding BA's offices. BA put two senior executives on leave.
Virgin Atlantic was also involved in the probe but would not say whether it was a target or not. American Airlines and United Airlines were also cooperating but said they were not direct targets. Analysts said on Friday BA faced a maximum fine of 10 percent of its annual transatlantic turnover, or about 315 million pounds. If the probe involved the airline's total operations that could increase to 900 million pounds.
But that could be the least of its problems if fallout from the probe leads to a dismantling of current arrangements on routes between London's Heathrow airport and the United States.
BA, Virgin, American Airlines and United are the only four airlines allowed to fly direct between Heathrow Airport and the United States.
"It is inevitable. The U.S. and UK governments effectively set up a cartel when they only allowed four airlines into Heathrow," Exane BNP Paribas analyst Nick van den Brul said. Some analysts said the investigation could be the catalyst which forces BA to open up Heathrow to additional transatlantic carriers, an issue rival airlines have been pushing for some time.
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060623:MTFH41729_2006-06-23_12-23-48_L23191273&type=comktNews&rpc=44
LONDON, June 23 (Reuters) - British Airways faces fines of up to 300 million pounds ($549 million) if found guilty of price-fixing in an investigation launched by competition regulators in the UK and United States, analysts said on Friday.
UK and U.S. authorities said on Thursday they had launched a civil and criminal probe into an alleged cartel over air fares and fuel surcharges after raiding BA's offices. BA put two senior executives on leave.
Virgin Atlantic was also involved in the probe but would not say whether it was a target or not. American Airlines and United Airlines were also cooperating but said they were not direct targets. Analysts said on Friday BA faced a maximum fine of 10 percent of its annual transatlantic turnover, or about 315 million pounds. If the probe involved the airline's total operations that could increase to 900 million pounds.
But that could be the least of its problems if fallout from the probe leads to a dismantling of current arrangements on routes between London's Heathrow airport and the United States.
BA, Virgin, American Airlines and United are the only four airlines allowed to fly direct between Heathrow Airport and the United States.
"It is inevitable. The U.S. and UK governments effectively set up a cartel when they only allowed four airlines into Heathrow," Exane BNP Paribas analyst Nick van den Brul said. Some analysts said the investigation could be the catalyst which forces BA to open up Heathrow to additional transatlantic carriers, an issue rival airlines have been pushing for some time.
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060623:MTFH41729_2006-06-23_12-23-48_L23191273&type=comktNews&rpc=44
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