The European Commission said last night it was investigating whether Boeing Co and European consortium Airbus Industrie had colluded over aircraft price rises. The possibility has revived the Commission's worst fears that the world's only two manufacturers of big passenger aircraft would no longer compete against each other on price.

"The Commission is investigating what is behind the statements at Farnborough fair when they simultaneously announced price rises," said Commission spokesman Mr Stefan Rating.

An Airbus spokesman immediately rejected the suggestion that it had consulted with Boeing on prices, saying: "Even to hint that would be insulting."