British Airways, Iberia and American work on antitrust dispute with the EU

British AirwaysBritish Airways, American Airlines, and Iberia are negotiating with the European Union to settle an anti-trust dispute. The three airlines want to establish more of a joint venture – sharing revenue, schedules, and marketing -- but the European Union is hesitant to get on board, since the scheme may eliminate competition on some trans-Atlantic routes.

British Airways and American have tried twice in the past decade to combine efforts, but the EU would only grant them permission if they agreed to give up slots at Heathrow, and the deal never came to fruition. Now, joined by Iberia, they’re trying again.

The EU doesn’t want these three airlines to stifle competition for airline tickets, and would like them to reassess their schedules and surrender some take-off and landing slots in order to even the playing field with other alliances. If the two parties can agree on the proposal, the airlines will be able to avoid cartel fine, which can amount to 10 percent of global revenue.

Right now, the airlines coordinate how they sell and operate flights between Europe and the United States, and they want to expand their alliance to manage capacity and pricing as well, for flights to Canada, Mexico, Puerto Rico, Norway, and Switzerland, according to USA Today.