The Competition and Markets Authority (CMA) has provisionally cleared Menzies Aviation’s takeover of part of Airline Services’ business after an in-depth investigation allayed competition concerns
The two firms supply airlines in the UK with a variety of support services, including the de-icing of aircraft and ground handling.
An initial probe raised concerns that the merger could restrict choice for airlines at a number of key airports for both de-icing and ground handling, potentially leading to higher prices or a worse service.
These concerns led to the merger being referred to a group of independent CMA panel members for a more indepth investigation.
However, the CMA said today that ‘based on a thorough evaluation’ of the wider evidence, it has found that the market for ground handling services is particularly dynamic, with a strong recent history of companies entering the market to compete for contracts.
"With regard to de-icing services, the CMA has found that competition between Menzies and Airline Services is very limited such that the merger would not lead to a substantial lessening of competition."
The CMA is inviting comments on its findings until January 9. It will then consider any submissions it receives before reaching a final decision, the deadline for which is January 28.
