Press Release: Mergers: Commission blocks proposed merger between Aegean Airlines and Olympic Air

The European Commission has prohibited, on the basis of the EU Merger Regulation, the proposed merger between Aegean Airlines and Olympic Air, as it would have resulted in a quasi-monopoly on the Greek air transport market. This would have led to higher fares for four out of six million Greek and European consumers travelling on routes to and from Athens each year. Together the two carriers control more than 90% of the Greek domestic air transport market and the Commission's investigation showed no realistic prospects that a new airline of a sufficient size would enter the routes and restrain the merged entity's pricing. The companies offered to cede take-off and landing slots at Greek airports, but Greek airports do not suffer from the congestion observed at other European airports in previous mergers or alliances.

• Primary Source

European Commission: Speech/11/47: Joaquín Almunia, Vice President of the European Commission, responsible for Competition Policy, "Introductory remarks at the press conference on the Aegean Airlines/ Olympic decision" http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/11/47&format=HTML&aged=0&language=EN&guiLanguage=en

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