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European Commission investigating codeshares; Alitalia and Meridiana in negotiations

Analysis

European Commission launched a pair of investigations into European codeshare agreements. The investigations cover the Munich-Istanbul and Frankfurt-Istanbul routes, operated under codeshare between Lufthansa and Turkish Airlines and Brussels-Lisbon, operated by TAP Portugal and Brussels Airlines. The commission believes the codeshare agreements may distort competition between Germany and Turkey and between Belgium and Portugal.

Summary
  • The European Commission has launched investigations into codeshare agreements between Lufthansa and Turkish Airlines, and TAP Portugal and Brussels Airlines.
  • The investigations focus on the Munich-Istanbul, Frankfurt-Istanbul, and Brussels-Lisbon routes.
  • The European Commission believes that these codeshare agreements may distort competition between Germany and Turkey, and between Belgium and Portugal.
  • Meridiana is in negotiations with Alitalia for a possible partnership, potentially as a defensive measure against acquisition by Lufthansa.
  • Aer Lingus, Turkish Airlines, and flybe experienced gains in their share prices, while SAS Group shares slipped.
  • These daily share price movements were observed on 11-Feb-2011.

Elsewhere in Europe, Meridiana confirmed it is engaged in negotiations with Alitalia regarding a possible partnership. Local media reports indicated that Alitalia is interested in the carrier as a defensive measure against its acquisition by Lufthansa.

European airline shares were mixed, with Aer Lingus rising 2.7%, Turkish Airlines up 2.7% and flybe gaining 1.3%. SAS Group shares slipped 2.1%.

Selected European airlines daily share price movements (% change): 11-Feb-2011

EAD

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