EC expected to approve airline merger

www.moneynews.co.uk > Other > EC expected to approve airline merger

EC expected to approve airline merger

BRUSSELS, EU - The European Commission is to give conditional approval to the proposed merger of Groupe Air France and KLM Royal Dutch Airlines NV today, according to sources close to the dossier.

The AFX news agency cites one source as stating that they are "no longer expecting" a last-minute setback, raising hopes that the deal will proceed.

The airlines are already thought to have agreed to conditions upon which any merger will be contingent, including relinquishing 100 slots to rival companies on European and US routes.

The routes concerned reportedly include Amsterdam/Paris, Amsterdam/Lyon, Amsterdam/New York, Amsterdam/Atlanta and Paris/Detroit as well as flights to Italy, where Air France has an alliance with Alitalia,.

The commission is also expected to call for the two airlines to abolish their minimum pricing practice.

The US department of justice is also due to rule on the deal today.

Related News : Other
	Government accounts are getting better
	Public sector pay rising faster than the private sector
	Monti slaps Microsoft with record fine
	Phone bills confuse consumers
	Lib Dems vote against council tax
	Prescott claims councils are listening to tax warnings
	Fewer services, more tax
	Consumers warned about energy salesmen
	Dad's work at home worth £14,500
	Massive jackpots for Euro lottery