EC concerned by Olympic Air/Aegean merger, opens investigation

European Commission opened (30-Jul-2010) an investigation under the EU Merger Regulation into the planned merger between Olympic Air and Aegean Airlines. The initial market investigation indicated the proposed merger could raise serious competition concerns, in particular because the merged entity would have very high, if not monopolistic, market shares on all domestic routes and on a number of international routes where both parties operate. The EC also has serious doubts as to the compatibility of the transaction with the Merger Regulation in connection with the provision of public service obligation routes in Greece and the provision of ground handling services in Greece. The EC has until 07-Dec-2010 to take a final decision on whether the merger would significantly impede effective competition in the European Economic Area or any substantial part of it. [more]