The OFT accepts undertakings in lieu of reference and clears the merger conditional to transfer of slots, while accepting that restoration of competition to pre-merger levels does not require to precisely replicate the pre-merger situation (Air France Finance-City Jet/VLM Airlines)

By a recent decision the OFT accepted the commitments offered by the merging parties upon the basis of Article 73 of Enterprise Act and conditionally cleared the Air France Finance-City Jet/VLM Airlines merger instead of referring it to the Competition Commission (CC) [1]. The decision is noteworthy for the resilient interpretation given by the OFT of the conditions for the approval of undertakings in lieu of reference. As a result, the OFT approved commitments although they did not wholly match the competition concerns raised during investigations. The background of the case The merger consists in the Air France KLM group (AFKL) acquisition of a Belgian regional airliner, VLM Airlines, to be carried out through two wholly-owned subsidiaries Air France Finance and City Jet. Following

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

Quotation

Michele Giannino, The OFT accepts undertakings in lieu of reference and clears the merger conditional to transfer of slots, while accepting that restoration of competition to pre-merger levels does not require to precisely replicate the pre-merger situation (Air France Finance-City Jet/VLM Airlines), 24 October 2008, e-Competitions October 2008, Art. N° 22668

Visites 1967

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues