European Commission sends Air Canada-Transat to Phase II
The European Commission has launched second phase proceedings in its review of the proposed acquisition of Transat by Air Canada.
The Commission is assessing whether the transaction “would lead to higher prices, reduced quality or less choice for travellers flying over the Atlantic”.
The Commission has acknowledged that the aviation sector is facing challenging times due to the impact of coronavirus. While the launch of a phase II investigation does not seal the fate of the deal, the Commission will have to take a long hard look at the scope for competition on a sustainable basis. It has said that “a return to normal and healthy market conditions must be based on markets that remain competitive.”
The merging airlines compete between 33 city pairs, 29 of which are direct routes and four are indirect. 10 European countries are affected: Belgium, Croatia, France, Greece, Ireland, Italy, Netherlands, Portugal, Spain and the UK.
The Commission has until 30 September to issue a final decision.
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