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Image header Agence Europe
Europe Daily Bulletin No. 10587
ECONOMY - FINANCE - BUSINESS / (ae) competition

IAG/BMI merger approved

Brussels, 02/04/2012 (Agence Europe) - On Friday 30 March, the European Commission cleared the proposed acquisition of the UK airline British Midlands Limited (bmi), by the International Consolidated Airlines Group (IAG), the holding company of British Airways and Iberia. The decision is conditional upon the release of 14 daily slot pairs at London Heathrow in order to facilitate new entry, and upon IAG's commitment to carry connecting passengers to feed the long-haul flights of competing airlines out of London Heathrow. In light of these commitments, the Commission concluded that the transaction would not raise competition concerns.

The operation was notified on 10 February and as initially notified, would have led to high market shares and even monopolies on a number of domestic, European and international routes out of London Heathrow airport. The Commission also analysed whether there was a risk that IAG would prevent passengers from connecting on long-haul flights operated by competing airlines out of London Heathrow. In light of the commitments made by the company, the Commission concluded that the transaction would not raise competition concerns. (FG/transl.fl)

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