UPDATE 1-U.S. gives final OK for Aer Lingus to join transatlantic joint venture

(Adds more details, no immediate Aer Lingus comment)

By David Shepardson

WASHINGTON, Dec 21 (Reuters) - Irish airline Aer Lingus
received final U.S. approval on Monday to join a transatlantic
joint venture with other major airlines.

The U.S. Transportation Department in November granted
tentative approval for Aer Lingus to join the venture consisting
of American Airlines, British Airways, OpenSkies, Iberia
and Finnair.

The announcement will give the joint venture control of more
than half of the U.S.-Ireland passenger flight market. The
approval will integrate Aer Lingus into the venture's network
planning, pricing and sales.

Aer Lingus did not immediately comment.

Aer Lingus controls 44% of the U.S.-Ireland flight market, a
figure that will rise to 60% for the alliance.

In 2015, International Consolidated Airlines Group (IAG)
, the parent company of British Airways, Iberia and
OpenSkies, acquired Aer Lingus. The group petitioned in 2018 to
allow Aer Lingus to join the alliance.

Despite the alliance's majority market share, the U.S.
regulator noted steps that it said would support competition.

As a condition of approval, the department proposed the
venture maintain commitments to release landing and takeoff gate
slots at London airports to competitors. Those were imposed when
the alliance was first approved in 2010.

In addition, the Transportation Department noted the
presence of a strong competitor outside the alliance. It said
the second-largest carrier in the Irish-U.S. market, low-cost
airline Norwegian, "has shown an aggressive ability to
challenge established carriers in the transatlantic market with
its low-fare pricing model."

The department also argued that new aircraft models would
allow airlines to fly transatlantic routes with fewer seats and
lower costs.
(Reporting by David Shepardson; Editing by Chris Reese and
Peter Cooney)