Brussels, 28/07/2009 (Agence Europe) - On Tuesday 28 July, the European Commission confirmed it had received an amended proposal from the airline company, Lufthansa, for acquisition of Austrian Airlines. “Now the Commission will market-test this proposal”, a Commission spokesman said. This kind of test consists in a simulation to assess the concentration's impact on competition, mainly on connecting flights or overlapping activities of the parties concerned. There is also an element of restructuring aid amounting to €500 million, according to a Lufthansa press release the same day.
Clearance from the Austrian Takeover Commission is subject to Lufthansa receiving the Commission's formal endorsement by 31 July. Lufthansa is also said to have requested that Austrian authorities extend this time until 31 August. Last week, a spokesman for Neelie Kroes, Competition Commissioner, had said it would take a “miracle” for the concentration to be approved by the Commission by the date initially foreseen. It should be noted that, as the Commission points out, this is an “internal time limit” between Lufthansa and Austria. The Commission specifies that the deadline does not concern the Commission, which gives itself until November this year to give clearance.
Lufthansa seems to be of the opinion that only the problem of deadline is an obstacle to acquisition. It is apparent, the press release states, “that a resilient agreement with the European Commission can be reached, but the formal approval cannot be obtained in due time” - hence the request put to the Austrian authorities for an extension. On the Commission side, the spokesman abstained from confirming whether the new proposal is an improvement on the initial project which, observers say, did not make a good impression on DG Competition. (C.D./transl.jl)