=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/07/01/f= inancial1015EDT0053.DTL ---------------------------------------------------------------------- Monday, July 1, 2002 (AP) EU regulators say Air France-Alitalia alliance needs changes to win approval (07-01) 07:15 PDT BRUSSELS, Belgium (AP) -- European Union regulators said Monday they could not grant antitrust exemption to an alliance between Air France and Alitalia without steps to ensure competition on routes between France and Italy. In announcing the European Commission's "serious doubts" about the deal, the competition commissioner, Mario Monti, said the flag carriers have been asked to propose ways to allow for new competitors to emerge on the affected routes, notably Paris-Rome, Paris-Milan and Paris-Venice. The two airlines announced plans last November to integrate their hubs in Paris, Milan and Rome and cooperate on determining passenger capacity, flight frequencies and prices to be charged on flights between France and Italy. In addition, Alitalia would be integrated into the global SkyTeam allian= ce created by Air France and U.S.-based Delta Air Lines. Commission spokeswoman Amelia Torres refused to speculate about what concessions the two airlines would need to make to win the EU antitrust exemption. But she pointed to a recent partnership between Lufthansa and Austrian Airlines, which agreed to surrender landing and takeoff rights at their respective hubs to encourage smaller carriers and prevent the formation of a monopoly. =20 ---------------------------------------------------------------------- Copyright 2002 AP