News Release
Continental Airlines Reacts to European Commission's Conditions for Approval of BA/AA Alliance
HOUSTON, July 8, 1998 -- Continental Airlines (NYSE: CAI.B and CAI.A) today said it was very disappointed in the European Commission's proposed remedies for the anticompetitive combination of British Airways and American Airlines. In particular, the EC does not call for divestiture of enough BA/AA slots to allow other carriers the ability to mount competitive service in London.
Continental said the BA/AA deal will be a "disaster for consumers" if the two carriers are allowed to control transatlantic routes to the extent that the EC proposes.
"We will continue to oppose this deal in the U.S. and Europe until or unless we see that competition will be given a chance to succeed," said a Continental spokesperson. "We remain ready to compete if given the opportunity. However, today's disappointing announcement by the EC indicates that other carriers will not be able to obtain the level of access to Heathrow airport needed to provide BA/AA with a competitive challenge."
Continental currently flies from Gatwick to New York/Newark and Houston. Continental alone would require at least 140 slots per week and related facilities at Heathrow to serve New York/Newark, Houston and Cleveland at a level that would provide minimum essential competition with a combined BA/AA.