AEGEAN AND OLYMPIC MERGER BLOCKED BY EU

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By TESTCustomwebLP TESTCustomwebLP January 27, 2011 17:02

AEGEAN AND OLYMPIC MERGER BLOCKED BY EU

Aegean Airlines’ plan to merge with Olympic Air was blocked by European Union antitrust regulators yesterday over concerns that it may harm competition. “We had no choice but to prohibit the deal” said EU Competition Commissioner Joaquin Almunia. “The airline resulting from the merger would have had a quasi-monopoly. This would have led to higher fares for airline passengers in Greece.”

It’s the first time the EU has blocked a deal since it stopped Ryanair from taking over Aer Lingus in 2007 because the airlines would control most Irish flights and have the power to increase prices.

Aegean and Olympic said in a joint statement that they would review the EU decision and “decide their possible further actions within the framework of existing legislation.” They have the right to appeal the EU ruling.

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By TESTCustomwebLP TESTCustomwebLP January 27, 2011 17:02
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