Press Release: Mergers: Commission opens in-depth investigation into proposed merger between Olympic Air and Aegean Airlines

The European Commission has opened an in-depth investigation under the EU Merger Regulation into the planned merger between Olympic Air and Aegean Airlines, both Greek airlines active in passenger air transport.

The Commission’s initial market investigation indicated that the proposed merger could raise serious competition concerns, in particular because the merged entity would have very high, if not monopolistic, market shares on all domestic routes and on a number of international routes where both parties operate.

The Commission also has serious doubts as to the compatibility of the transaction with the Merger Regulation in connection with the provision of Public Service Obligation routes in Greece and the provision of ground handling services in Greece.

The decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days, until 7 December 2010, to take a final decision on whether the merger would significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.