The US Department of Justice (DoJ) has warned that the tie up between British Airways (BA) and American Airlines (AA ) could increase the price of transatlantic airfares by as much as 15%.
The proposed deal, an extension of the existing oneworld alliance, would result in “competitive harm” on transatlantic routes serving over 2.5 million passengers a year, according to the DoJ.
The DoJ has said that flights between London and New York, Boston and Chicago are likely to experience fare rises.
BA has rejected the DoJ’s claim that a tie-up with AA would lead to higher airfares and that there was a lack of competition at Heathrow.
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