European Commission expected to hold up bmi takeover
IAG has been told its proposed concessions for the takeover of bmi are likely to be rejected by the European Commission.
The airline group, formed through the merger of British Airways and Spain’s Iberia, has offered to give up some take-off and landing slots at Heathrow airport in a bid to get quick regulatory approval for its purchase of Lufthansa owned bmi.
But IAG’s lawyers have been told it is unlikely to be enough to satisfy Brussels’ competition concerns, reports the Financial Times.
The deadline for an initial Commission decision has been extended to 30 March.
IAG has offered up to £172.5m for bmi which would increase IAG’s share of slots at Heathrow from 44.8 per cent to 53.5 per cent.
The Office of Fair Trading said last week that it would work closely with the European Commission to look at whether the deal posed competition concerns for domestic passengers from other airports in the UK as well as those travelling from Heathrow.
It said the Commission has "extensive expertise" in handling airline mergers, including the merger of British Airways and Iberia in 2010 and the tie up between BMI International and Lufthansa, see previous story.
A deal to sell budget airline bmibaby, which is celebrating its 10th birthday this month, is expected in the next few weeks.
Diane
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025