RAILWAYS: COMMISSION CLEARS EUROSTAR MANAGEMENT JOINT VENTURE.

Summary: British Airways, one of the firms to make up Inter-Capital and Regional Rail (ICRR) - a joint venture which will run the management of Eurostar (UK) Limited (EUKL) - has been cleared to be part of the new joint venture, given the green light by the European Commission on December 11. Although the British national carrier competes with Eurostar on the London to Brussels and Paris runs, the Commission cleared the deal "further to contractual changes designed to remove any risk of anti-competitive effects on the London/Paris/Brussels travel routes" And it warned it would have to be re-notified of any material change in BA's current position within ICRR.

The Commission's investigation focused on the possible impact on competition for passenger travel between London, Paris and Brussels, especially for business "time-sensitive" travellers. The Commission nevertheless stressed that it was the first stage of a proposed two-stage project, and that BA's shareholding and other rights in ICRR at this first stage - and hence its ability to influence the management of EUKL - were limited in comparison with those of other shareholders...