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Atlantic Joint Business Agreement Cma

By Tuesday, July 11, 2023No Comments

The Atlantic Joint Business Agreement (AJBA) between Delta Air Lines, Air France, KLM, and Virgin Atlantic has been a hot topic in the aviation industry lately. But what exactly is the AJBA, and what impact will it have on consumers and competitors?

The AJBA is a collaboration between the four airlines that aims to provide more seamless travel and better connectivity for passengers flying between Europe, the UK, and North America. It involves revenue sharing, joint decision-making, and a closer alignment of operations and services.

The partnership was first established between Delta and Air France-KLM in 2009, and Virgin Atlantic joined in 2013. In 2019, the partnership was renewed and expanded to include the four airlines, with a focus on enhancing customer experience, investing in new technologies, and expanding the route network.

So what does this mean for consumers? Proponents of the AJBA argue that it will result in more convenient and efficient travel, with more options for routes, schedules, and fares. It could also lead to improved loyalty programs and benefits for frequent flyers.

However, critics are concerned that the partnership could result in higher prices and reduced competition, as the four airlines hold significant market power in the transatlantic market. There are also questions about the impact of the AJBA on smaller airlines, which may struggle to compete with the larger partners.

It`s worth noting that the AJBA still needs to be approved by regulatory authorities, including the US Department of Transportation and the European Commission. These agencies will need to assess the potential impact of the partnership on competition and consumer choice before giving it the green light.

In summary, the Atlantic Joint Business Agreement between Delta, Air France-KLM, and Virgin Atlantic is an ambitious collaboration that aims to provide more seamless travel and better connectivity for passengers. While there are potential benefits for consumers, there are also concerns about the impact on competition and prices, and regulatory approval is still pending.