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Olympic and Aegean merger expected to be blocked by EU

21-Jan-2011 1:25 PM

European Commission is reportedly expected to block the proposed merger of Aegean Airlines and Olympic as additional concessions are provided to encourage rival airlines to enter the Greek market (Reuters, 20-Jan-2011). A prohibition would be the first by the European Commission since Jun-2007, when it blocked another deal in the airline sector - Ryanair's plans to acquire Aer Lingus. The Greek carriers have suggested some remedies to the EC although these are reportedly insufficient to ease regulatory concerns. A decision is reportedly expected on 26-Jan-2011 ahead of the 02-Feb-2011 deadline for the decision.