OFT want slot divestment from Air France KLM at London City Airport
10.05.08
The Office of Fair Trade (OFT) said yesterday said that it is considering whether to accept undertakings in lieu of reference from Air France KLM (AFKL) in relation to its planned acquisition of VLM Airlines. If suitable undertakings are not obtained, the merger will be referred to the Competition Commission.
The OFT has concerns that the merger will substantially lessen competition in the provision of scheduled flights for business travel between London City Airport and Amsterdam's Schiphol Airport. However, it has suspended any referral as AFKL has offered to divest a sufficient number of take-off and landing slots between the two airports to a buyer.
VLM and AFKL are the two biggest airlines operating flights between the two airports. Even allowing for entry by British Airways on this route in May 2008, the parties will clearly remain the principal choices for business travellers requiring peak-time outbound and inbound flights, with a combined share per week in the 70-80% range of both seat capacity and number of flights.
The OFT considers that this remedy, in principle, appears clear-cut and would restore competition on the route. It will now consider AFKL's undertakings proposal further.
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book london city airport hotel or london city airport car parking at the lowest price, click on these links to two great london city airport car parking and london city airport hotel price comparison pages.
