European Commission competition officials have opened an in-depth investigation into the latest attempt by KLM to acquire full control of its fellow Dutch airline Martinair.
KLM already owns 50% of Martinair and in July notified EC competition officials of its plan to acquire the remaining 50% from Maersk.
The EC has now announced it will open a 90 day probe into the planned takeover amid potential competition concerns relating to some long-haul routes from Amsterdam.
"Although KLM currently jointly controls Martinair, the Commission's preliminary market investigation has shown that KLM's proposed acquisition of sole control of its Dutch counterpart might substantially reduce competition, at least on the routes connecting Amsterdam to Curacao and Aruba, both as regards the supply of air transport services to passengers and the wholesale supply of airline seats to tour operators," it says in a statement.
It notes that proposed remedies put forward by KLM last month "were not sufficiently clear-cut to remove the Commission's serious doubts".
The EC however has not found any competition concerns in the cargo sector where both carriers operate.
It now has until 21 January to take a final decision on the planned acquisition.
KLM has been frustrated in earlier attempts to take full control of Martinair by the concessions EC competition regulators sought as part of accepting any deal. But market conditions and the changed scope of Martinair's operations - it has dropped its short-haul passenger flights as part of a restructuring - prompted it to try again for full ownership.
Source: Air Transport Intelligence news
