Bmi British Midland said today it would file a formal complaint with the European Union this week alleging a lack of competition at London Heathrow airport.
Bmi, the second-biggest British airline, said the Bermuda II agreement restricting services from Heathrow to the United States to just four airlines - British Airways (BA), Virgin Atlantic, American Airlines (AA) and United Airlines - was breaking EU competition law.
The agreement was signed by Britain and the United States in 1977.
BA and AA recently announced they were reviving plans to form a new transatlantic partnership, three years after they dropped a previous bid because of demands from competition authorities that they give up precious take-off and landing rights at Heathrow.
But bmi said although BA and AA had applied for anti-trust immunity, the application did not guarantee the Bermuda II agreement would be revoked by the two governments.
"It is extremely regrettable that we have to resort to taking this course of action," said bmi chairman Sir Michael Bishop in a statement.
"We believe that the agreement flouts EU competition law as it clearly prevents free competition".
AFP