EU probes Alitalia flight pricing

Brussels has asked  Italian flag carrier Alitalia to provide details of an order forcing rival airlines to hike up prices on long-haul Trans-Atlantic flights.

A spokesman for the European Commission confirmed on Monday that a letter had been sent to the Italian authorities and a reply was expected next month.

Rome has ordered EU carriers to increase their prices on Rome to New York flights to the same level set by the struggling state owned airline.

British Airways has protested to the European Commission over the order that stops UK airlines from undercutting the Italian carrier on flights to the US that connect at London’s Heathrow.

Other airlines too are angry over protectionist demands to hike fares to Alitalia levels after the Italian carrier pocketed a lavish €400 million cash injection in July, its third huge subsidy in seven years.

German airline Lufthansa has also been asked to raise prices to Alitalia levels and Brussels has now written to the EU’s 25 capitals to “take stock” of other problems with bi-lateral deals between national authorities.

Several EU countries have bi-lateral deals which prevent airlines offering cheaper indirect long-haul flights which undercut the direct carrier.

The European Commission said it would now be looking into the legal implications of these bi-laterals which predate the  EU's single aviation market.

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