Shortly before the Christmas break it was announced Lufthansa would sell BMI to IAG.  This caused uproar at Virgin where Richard Branson claimed the sale would lead to BA having a monopoly over flights from Heathrow Airport.  There could be some truth in what he says; BA will benefit from a further 8.5% of landing slots at Heathrow.  This could detriment consumers as where one company has too much control over a particular market it can lead to price fixing and prevent other companies from competing, thereby limiting consumer choice.  The year ahead is set to be a lively one as the Competition Authorities carefully check the legalities of the deal completing and the operators look at ways of consolidating, which BA has already indicated will involve job losses at BMI.

In other news today, Iberia pilots have announced a day of strike action over plans to introduce a new low cost airline under its brand.  The pilots are concerned this could impact on pay and work conditions.  In my view, it seems a wise move by the airline to keep up with changing trends in domestic and European travel.  Much investment has gone into high speed rail links throughout Europe such that they are now a viable substitute to flying (and for many a much less stressful one).  Iberia has spotted the need to adapt and introduce a lower priced option so it can compete with its rival airlines and railway operators.  All it needs to do now is get its fleet of pilots on board.  Reports suggest those affected by the strikes have been booked onto flights with other airlines.


For more information please contact Chris Deacon, a Solicitor at Blake Lapthorn's Claims Abroad team on 02380 857399 or christopher.deacon@bllaw.co.uk