CityJet face probe over VLM takeover
04.01.08
Dublin based Air France subsidiary Cityjet's operations at London City Airport are to be investigated by the UK Office of Fair Trading, after the announcement that parent company Air France-KLM has agreed to buy VLM Airlines.
The move will see VLM, which operates over 100 flights a day using a fleet of 18 Fokker 50 aircraft and one BAE 146, with the Docklands airport a hub for most of its services, link up with the CityJet and give Air France control of more than 50 percent of the flights at London City.
The deal gives rise to the possibility of dominance at the airport, which will be examined by the Office of Fair Trading. Geoffrey O'Byrne-White, Cityjet chief executive, said: 'The acquisition will be subject to scrutiny in the UK by the Office of Fair Trading because when you add the two airlines together they would represent more than 50% of the traffic at London City.'
However, the purchase of VLM's operations by Air France-KLM is less likely to raise competition concerns in the EU Commission. This is because in a European context it is a small regional airline.
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