SF Gate: EU gives Lufthansa, Austrian Airlines six-year antitrust exemption on partnership

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Friday, December 14, 2001 (AP)
EU gives Lufthansa, Austrian Airlines six-year antitrust exemption on partn=
ership



   (12-14) 07:50 PST BRUSSELS, Belgium (AP) --
   The European Union said Friday it intends to give Deutsche Lufthansa AG
and Austrian Airlines AG a six-year antitrust exemption for their
partnership after the two companies resolved concerns about reduced
competition.
   The EU's executive commission had warned in May that the partnership was
likely to create a "quasi-monopoly" on air travel between the two
neighbors and could not be cleared as proposed.
   The airlines then agreed on steps to aid smaller carriers, including
making airport slots available to newcomers and measures to prevent them
from being undercut or squeezed out of a market shortly after entry.
   "The undertakings offered will create the conditions for entry of rival
airlines on routes between Germany and Austria," the EU's executive
commission said in announcing its intention to grant the exemption, the
longest possible under EU rules.
   A similar partnership between Austrian Airlines and SAS is still under
review.

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Copyright 2001 AP

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