LONDON, Nov 8, 2001 /PRNewswire via COMTEX/ -- Delta Air Lines (NYSE: DAL) today filed comments with the U.K. Office of Fair Trading (OFT) urging that the proposed British Airways - American Airlines alliance be rejected unless other airlines are allowed significant new access to London-Heathrow Airport. The OFT is examining the British Airways - American deal to decide if the agreement is anti-competitive. The European Commission is also conducting an investigation and may open a formal procedure under Article 85 of the EC Treaty. In addition, the arrangement is under review by the U.S. Department of Transportation.

Accopresident - Government Affairs. "This alliance proposal is a warmed-over version of the same British Airways/American partnership that was rejected by regulators four years ago," said Yohe.

"London-Heathrow Airport is the single most important European gateway for Europe-U.S. travelers, but Delta and other U.S. carriers have no opportunity to provide Heathrow-U.S. flights due to slot and facilities barriers," said Yohe. "In order for the OFT to seriously consider this alliance proposal there would have to be (1) a significant divestiture of takeoff and landing slots from British Airways and American to permit other airlines to offer competitive services, (2) airport gates and terminal facilities at London- Heathrow to accommodate the new services, and (3) the opportunity for competitors to initiate their new services to London-Heathrow before implementation of the alliance. These steps are essential in order to ensure price and service competition to British Airways and American."

In its filing, Delta said that British Airways and American should release a minimum of 504 weekly slots to competitors, with 154 of those slots -- the equivalent of 11 daily roundtrip flights -- allotted to Delta. Yohe explained, "This divestiture is necessary to allow other carriers to competitively discipline the massive British Airways and American operation, which would hold an excess of 3,500 weekly slots. Without such divestitures, British Airways and American will stifle competitors on most London-U.S. routes," he said.

Delta said that without the proposed conditions, the proposed alliance is anticompetitive and should be dismissed for the same reasons it was rejected by regulators four years ago.

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