TUI/First Choice ‘dominance’ concern in Ireland
Either TUI or First Choice may be forced to dispose of one of their Irish tour operating interests to satisfy European competition authorities.
The issue of “potential dominance” following the proposed merger in the Irish market, where TUI and First Choice have leading brands in Ireland and Northern Ireland, has been raised by the European Commission.
TUI owns market leader Budget Travel, with a 35% share of the Irish tour operating market and an annual turnover of more than 200 million euros.
First Choice owns Falcon and JWT Holidays, which claim to be the second largest operating group in Ireland and Northern Ireland.
A joint statement by the two travel groups said: “Following a meeting with the Competition Case Team of the European Commission on 3 May 2007 at which the issue of potential dominance post merger in the Republic of Ireland was raised, First Choice Holidays PLC and TUI AG have agreed to consider specific undertakings to address this issue including the potential sale of one of their Irish businesses.”
As a result, the initial ‘phase one’ investigation by the commission into the merger will be extended by 10 working days. A decision on whether the merger is to be cleared or recommending for a further probe will be made on or before June 4.
“First Choice and TUI AG are confident that the proposed merger will be cleared by the European Commission,” the statement said.
Meanwhile, the commission is due to rule today on the planned £2.8 billion Thomas Cook/MyTravel merger, with reports suggesting the deal to create Europe’s second largest tour operating group will be cleared.
by Phil Davies
Phil Davies
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