Cargolux Airlines International SA (26-Jan-2011) and 10 other airlines were fined by the European Commission for allegedly operating a cartel in airfreight on 09-Nov-2010. The company will file an appeal against the decision to impose a EUR79.9 million fine on Cargolux out of a total amount of EUR799.4 million for colluding to set fuel and security surcharges between 2000 and 2006. [more]
Cargolux files appeal against European Commission decision
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"Too little competition in the American (airline) market". EU head: US consolidation goes too far
At the ACI 26th General Assembly in Athens on 21-Jun-2016 the European Commission's DG Competition Henrik Mørch said that the EC has generally approved JVs but is closely watching consolidation trends. As reported in a CAPA news brief, Mr Mørch said that the EC is interested in how much consolidation can be justified with efficiency gains for the consumer.
He added that, while the European aviation market is more fragmented than the American market, taking the level of consolidation that exists in the US and applying it to Europe is "not necessarily something we would advocate for...there's too little competition in the American market in our view".
However, the level of concentration on the North Atlantic, the principal market where JVs have been approved by the Commission, is greater than in North America – the market that Mr Mørch considers too concentrated. Meanwhile, European fragmentation weighs heavily on its airlines' yields and holds back their profitability.