[170710.EN.AIR] EU Regulators Approves British Airways, Iberia Merger

THE European Commission (EC) has approved the proposed merger between British Airways and Spanish flag carrier Iberia.

"The commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA)," the EC said.

It noted that both British Airways and Iberia are members of the Oneworld Alliance. Their activities overlap in the areas of passenger transport by air, cargo transport by air, ground handling and MRO (maintenance, repair and operating) services.

The EC said that its investigation confirmed that the merged entity will continue to be subject to competition from a number of competitors on the markets for air cargo transport and ground handling services, and that the proposed merger will not have a significant impact on the market for MRO services.

The EC concluded that the transaction will not significantly impede effective competition on any of the markets concerned by the proposed merger. The EC also examined the passenger routes in question.

"The commission's investigation showed that the merged entity will continue to face sufficient competition from other carriers active on these routes, and therefore that passengers will have adequate alternatives to fly on these routes after the merger."

The EC also examined the effects of the proposed merger on a number of short- and long-haul routes on which one party offers a non-stop connection while the other party offers a one-stop connection, or on which both parties offer one-stop connections.

"Also on these routes, the commission's investigation showed that the merged entity will continue to face enough competition after the merger," the EC said.

Source : HKSG, 17.07.10.