EU travel agents, passenger groups urge tough line on airline mergers

EU REGULATORS should demand major concessions from airline mergers that hit competition or even block deals, EU travel agents and passenger groups said on Wednesday (Jan 31), underscoring concerns over deals involving Lufthansa and IAG.

The call from the European Travel Agents’ and Tour Operators’ Associations, lobbying group eu travel tech, the European Passengers’ Federation, the Airports Council International Europe and the European Consumer Organisation could bolster regulators’ hand against the carriers.

The European Commission, which acts as the European Union’s competition enforcer, last week opened full-scale investigations into German carrier Lufthansa’s bid for a minority stake in Italian state owned rival ITA, and also into British Airways owner IAG’s plan to buy out Air Europa.

The EU watchdog said both deals could reduce competition in short-haul and long-haul routes.

Should both deals go through, they would – after Air France-KLM’s recent acquisition of a 19.9 per cent stake in SAS – leave the top five European airline groups controlling 73.5 per cent of intra-EU traffic this year, the groups said in a joint statement.

“This wave of airline consolidation could drastically limit competition on thousands of connections, thus giving more leeway to market dominant players to develop and abuse their positions, at the expense of European travellers,” the groups said.

SEE ALSO

Lufthansa pulling flight capacity from other countries to meet booming India demand

British Airways sees business, long-haul recovery taking years

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

They urged the Commission to ignore any political pressure to wave through the deals.

“Where serious concerns arise, the Commission shall not shy away from using the tools at its disposal, including considering such mergers as incompatible with the common market or demanding significant remedies,” the groups said.

The Commission has previously nodded through deals after airlines ceded airport slots and opened up their frequent flyer programmes to rivals, but has recently signalled that this may not be enough. REUTERS