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Investigation of the Atlantic Joint Business Agreement

Competition Markets Authority

September 28
09:02 2023

Timetable

Action Date
Interim measures directions expire March 2026
Further investigation: information gathering, including issuance of information requests, CMA analysis and review of information gathered September 2023 to March 2024
Decision to issue second interim measures, extending remedy period under 2020 interim measure 4 April 2022
Decision to issue interim measures directions 17 September 2020
Decision not to accept commitments 17 September 2020
Consideration of representations received in response to the consultation on commitments June to September 2020
Consultation on commitments proposed by American Airlines and International Consolidated Airlines Group closed 4 June 2020
Consultation on commitments proposed by American Airlines and International Consolidated Airlines Group 7 May 2020 to 4 June 2020
Discussions with the parties under investigation on proposals for commitments December 2019 to May 2020
Decision on whether to issue a statement of objections Winter 2019/20
CMA analysis of parties submissions and assessment Autumn 2019
Further investigation including analysis of further information requests and submissions April to Summer 2019
Decision to proceed with the investigation April 2019
Initial investigation: information gathering, including issuance of information requests, CMA analysis and review of information gathered October 2018 to March 2019
Investigation opened 11 October 2018

Change log

The following changes have been made to the case timetable since it was first published in October 2018:

Date of change Reason for change Change made to timetable
28 September 2023 The CMA will assess the Atlantic Joint Business Agreement in the context of post-COVID recovery in the aviation sector Further investigation: information gathering, including issuance of information requests, CMA analysis and review of information gathered
4 April 2022 The CMA decided to issue new interim measures directions as a result of the continued impact of the COVID-19 pandemic on the sector, necessitating a longer period before it can complete its investigation Date on which the CMA decision to issue new interim measures was issued. Date of the interim measures expiry amended to 2026
17 September 2020 The CMA decided not to accept the commitments offered by American Airlines and International Consolidated Airlines Group and instead the CMA decided to issue interim measures directions Date on which the CMA decisions not to accept the commitments and to issue interim measures were issued. Date of the interim measures expiry added
7 May 2020 The CMA is consulting on commitments offered by American Airlines and International Consolidated Airlines Group, which, if accepted, will mean that the CMA will not issue a Statement of Objections Date for commitments consultation period and estimated date for CMA decision on whether to accept commitments added
4 September 2019 Additional time needed to analyse submissions Date for CMA decision on whether to issue a statement of objections changed from summer 2019 to winter 2019
11 April 2019 Additional time needed to gather and analyse additional information Date for completing initial investigation and information gathering changed from March 2019 to summer 2019

Decision to issue interim measures and extending remedies until 2026

4 April 2022: Due to the continued impact of the coronavirus (COVID-19) pandemic on the aviation sector and the fact that material recovery is taking longer than was anticipated in 2020, the CMA wants to ensure that the remedies made available under the 2020 Interim Measures continue to be available for 2 additional years. As a result of these unprecedented circumstances, the CMA is not in a position to complete its investigation in advance of the expiry of the 2020 Interim Measures in March 2024. A tender process will take place in autumn 2023 for the remedy slots for the additional 2 years.

The 2022 Interim Measures issued by the CMA will expire in March 2026, by which time it is expected that the airline sector should be in a more stable position. The CMA plans to complete its investigation and, if appropriate, put in place a longer-term remedy, before the interim measures expire.

London-Boston slot awarded

22 February 2021: The CMA has approved a Slot Release Agreement which will allow a new competitor, United Airlines, to enter the London-Boston route. The CMA has made this award in accordance with the terms of Clause 3 of the CMAs Interim Measures Directions issued on 17 September 2020 and following a tender process in Autumn 2020. In that process, United Airlines was awarded a daily slot pair for six IATA Seasons commencing in IATA Summer Season 2021. The CMA understands that United will announce its plans for servicing the route in due course (taking into account the ongoing COVID-19 pandemic and related restrictions).

Decisions not to accept commitments and to issue interim measures

21 September 2020: A Monitoring Trustee has been appointed, in accordance with clause 10 of the Interim Measures Directions. Find more information about the AJBA Monitoring Trustee or contact Justin.Menezes@mazars.co.uk.

17 September 2020: Having considered representations received in response to the May 2020 commitments consultation and as a result of the uncertainty created by the coronavirus (COVID-19) pandemic on the aviation sector, the CMA has decided that it would not be appropriate to accept the commitments offered by American Airlines and International Consolidated Airlines Group.

The CMA will not be able to complete its investigation before the expiry of various agreements currently in place pursuant to the Commissions 2010 commitments. This means that an enforcement gap (meaning a situation whereby there are no remedies in place to address the competition issues related to the AJBA) would have arisen if action was not taken urgently on an interim basis. Such an enforcement gap would significantly negatively impact the public interest (i.e. the interests of protecting competition and, by extension, consumers). Accordingly, the CMA has decided to issue interim measures directions.

The interim measures which have been imposed effectively extend the terms of the 2010 Commitments for an additional 3 years until March 2024. Airlines currently operating slots on London to Boston, Dallas and Miami routes pursuant to the 2010 commitments will continue to operate these slots for an additional year, until March 2022.

A tender process will take place in March 2022 for these slots for the remaining two years. A tender process will be undertaken this autumn in relation to a second slot on the London to Boston route.

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