The European Commission has approved the €1.4 billion takeover of Aer Lingus by the British Airways' owner International Consolidated Airlines Group (IAG).
The commission found that the takeover could “ultimately have led to higher prices” by reducing competition on certain routes. It was particularly concerned about competition the Dublin-London, Belfast-London and Dublion-Chicago routes.
The commission was swayed to clear the deal, however, after IAG agreed to give up five pairs of slots at London Gatwick and also to maintain Aer Lingus connecting flights with IAG’s lonbg-haul rivals, such as Virgin.
“These commitments adequately address all competition concerns,” said the commission.The European Commission has given the go-ahead to IAG to buy Aer Lingus. the deal has been cleared c under EU merger regulations and subject to commission concerns being addressed..
European Commissioner in charge of competition policy Margrethe Vestager said: “By obtaining significant concessions from the airlines the Commission has ensured that air passengers will continue to have a choice of airlines at competitive prices after IAG’s takeover of Aer Lingus. The five millionpassengers travelling each year from Dublin and Belfast to London will be able to choose amongseveral strong carriers. And we are also protecting passengers travelling on connecting flights betweenIreland and the rest of the world.”
