The European Commission's (EC) investigation of the possible takeover by British Airways of Dutch carrier KLM will not be restricted to route-by-route analysis of the merger's impact, but will be extended to cover effects on competition between European hubs, say Brussels sources.
The EC document sent to various European airlines suggesting a number of possible post-merger "remedies" lists only those moves BA and KLM say they would be willing to make to address competition concerns, says the source. Suggested moves include the effective sale of KLM's London Stansted-based low-cost subsidiary Buzz, and of either KLM's Stansted-Amsterdam route or BA's CityFlyer-operated London Gatwick-Amsterdam service (Flight International, 5-11 September).
It is believed that though the EC document lists "everything that has been offered", it is "not necessarily" the only consideration. While the EC's merger task-force always undertakes a route-by-route analysis when considering airlines, it will also focus on hub issues and the effective elimination of Amsterdam as a competitor to London. Some of the questions, the source says, may be beyond the power of BA/KLM to remedy.
The airlines consulted by the EC were due to respond as Flight International went to press.
Source: Flight International
