The European Commission said on 2 April that it had taken note of the announcement by Air Canada and Transat to terminate the proposed merger agreement under which Air Canada planned to acquire sole control of Transat.
The Commission confirms that the discussions with the companies and the remedies proposed so far “were not able to adequately address the competition concerns identified”. On 25 May 2020, the Commission opened an in-depth investigation into the proposed transaction (see EUROPE 12492/23).
Executive Vice-President for Competition Policy Margrethe Vestager recalled that the Commission had opened an in-depth investigation “because we had concerns that the proposed transaction would negatively affect competition in these markets leading to higher prices, reduced quality or less choice for travellers”.
At a time when the Covid-19 epidemic has hit the air transport sector hard, preserving competitive market structures is essential to ensure a swift and strong recovery, the Commissioner stresses. “Markets should remain dynamic and competitive when travellers will again be able to fly over the Atlantic for holidays or to visit their beloved ones”, adds the Vice-President.
The proposed transaction would have caused competition problems on a large number of transatlantic routes.
Link to Mrs Vestager’s statement: https://bit.ly/2PEAfZR (Original version in French by Lionel Changeur)