Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves joint control of Italian aviation business, (Nov 17, 2014)

The European Commission (EC) has approved the proposed acquisition of joint control over New Alitalia—an aviation business—by Alitalia Compagnia Aerea Italiana S.p.A. (Alitalia CAI) and Etihad Airways PJSC. The approval, however, is conditioned on the parties’ promise to release slots to a new entrant at the airports of Rome-Fiumicino and Belgrade, the EC announced on November 14.

In its examination of the proposed acquisition, the EC determined that the transaction—in all but one instance—would not raise serious competition concerns, due to the competitiveness of other carriers. However, the EC found that the acquisition would create a monopoly on the Rome—Belgrade route. Consequently, Alitalia CAI and Etihad agreed to release up to two daily slot pairs at Rome-Fiumicino and Belgrade airports to one or more new entrants. In addition, the two companies agreed to provide additional incentives, including a special prorate agreement; a fare combinability agreement; an interline agreement; access to the companies’ frequent flyer programs to new entrants; and the possibility for a new entrant to acquire grandfathering rights after a fixed period of time.

Companies: Alitalia Compagnia Aerea Italiana S.p.A.; Etihad Airways PJSC

News: AcquisitionsMergers Antitrust