The US Department of Justice has lost its predatory pricing case against American Airlines at the appeals stage.

The European Commission has announced a series of moves against state aid to airlines. On December 11, the Commission announced progress on three investigations, into Olympic Airlines, Ryanair and small regional carrier Intermediación Aérea SL (Intermed).

The European Commission has approved the partnership between Lufthansa and Austrian Airlines after the two airlines managed to allay the Commission’s competition concerns. It was no secret that Commissioner Monti had been uneasy about the creation of a monopoly on routes between Germany and Austria.

Plans for an alliance between British Airways and American Airlines suffered a major blow on December 17 when the US Department of Justice (DoJ) advised the Department of Transportation (DOT) to oppose the deal — unless the airlines divest sufficient landing slots at London’s Heathrow airport to allow other airlines to offer nine daily round trips from London to New York and Boston. BA and AA say that is too high a price to pay for the antitrust immunity they are seeking.

The US Department of Justice last week appealed against a Kansas District Court’s ruling in favour of American Airlines. The DoJ will attempt to show that American Airlines used unfair pricing to reduce competition on routes to and from Dallas/Fort Worth Airport.

German airline Lufthansa hopes to get approval from Brussels soon for its joint venture with SAS Scandinavian Airlines and British Midland. The deal would see the three carriers harmonise prices and share revenues on key routes in Europe.

United Airlines' parent company UAL is pursuing its US$11.6 billion merger with US Airways in the face of industry-wide antitrust concerns.

The United States Department of Justice has filed an antitrust suit against American Airlines for alleged predatory behaviour on routes out of its Dallas hub.