CMA questions Menzies Aviation buyout of Airline Services

Eleanor Steed
By Eleanor Steed August 8, 2018 15:21

CMA questions Menzies Aviation buyout of Airline Services

UK competition watchdog, the Competition and Markets Authority (CMA), has said that it will refer Menzies Aviation’s purchase of rival Airline Services for further investigation if the company does not address a number of concerns including the worry that the merger will lead to higher prices and lower quality service for airline customers.

In a statement, the CMA said: “Following its initial phase one investigation, the CMA has identified competition concerns regarding de-icing services at Edinburgh, Glasgow and London Heathrow airports, and ground handling services at London Gatwick and Manchester airports. The merger of Menzies and Airline Services, which are close competitors at these airports, could lead to less choice for the airlines operating there, potentially leading to higher prices and lower quality service.”

Both companies offer aircraft interior cleaning and maintenance, as well as ground handling, says the CMA, while Airline Services provides de-icing and presentation services to 60 airlines across 12 airports in the UK.

A Menzies spokeswoman said: “We note the decision of the CMA to refer the acquisition of Airline Services Limited. While we are disappointed by the decision, we will continue to co-operate with the CMA and its processes. Menzies Aviation’s first priority every day is to deliver safe and secure operations to our airline customers at over 200 airports globally. We are committed to growing our business and raising standards within our industry.”

Eleanor Steed
By Eleanor Steed August 8, 2018 15:21