BRITISH Airways has threatened to refer British Midland to the European Commission if it goes ahead with plans to sell a 20% stake in the airline to Star Alliance member Lufthansa.
In an angry reaction to news of the proposed deal, BA said it would be anti-competitive because it would give Star Alliance 24% of slots at Heathrow and 70% at Frankfurt. The BA-led Oneworld alliance has 38% of slots at Heathrow, but only ‘a minimal number’ at the German hub.
“British Midland has by this deal allowed German and USairlines direct influence over who flies from Heathrow and from many English regions,” a BA spokesman said.
The airline also accused British Midland of selling out to Oneworld’s rival Star Alliance.
“British Midland is now under German influence,” said the spokesman. “It is a sell-out to an alliance that has been given anti-trust immunity to share capacity and fix prices over the Atlantic.”
He added: “British Midland’s ‘Make the air fair’ campaign was always dubious.
“It should now be seen as a price-raising initiative, a raise not in fare price but in the price to be asked when trussing up British Midland for sale.”
BA chief executive Robert Ayling has ordered lawyers to study the grounds for an appeal to the Government or the EC.
British Midland refused to react to BA’s attack. A spokeswoman said it had agreed to two weeks of exclusive talks with Lufthansa to thrash out a deal and did not want to divert its attention from the negotiations or make any statement that would prejudice the situation.
Under the proposals, Lufthansa will buy one-fifth of Scandinavian airline SAS’s 40% stake in British Midland. Chairman Sir Michael Bishop will retain his controlling 60% interest.
The British carrier will also join Star Alliance, ending long speculation about which of the emerging airline groups it would join. British Midland has also been talking to Delta Air Lines and Air France, which are setting up their own international alliance.