The Office of Fair Trading has decided not to make a request to the European Commission for a UK review of British Airways’ parent IAG’s takeover of bmi from Lufthansa.
Instead, it said it would work closely with the European Commission as it assesses whether the proposed transaction raises competition concerns for airline passengers including those travelling to/from airports in Scotland and the North West of England to London Heathrow as well as the overall competitive position at Heathrow.
The OFT said the European Commission was better placed to consider the deal as some of the issues, such as the impact of the acquisition on transfer traffic and the overall competitive position at Heathrow, affect many countries, not just the UK.
Also, the Commission has "extensive expertise", it said, in handling airline mergers, including the merger of British Airways and Iberia in 2010 and the tie up between BMI International and Lufthansa.
OFT director of mergers Sheldon Mills said: "The proposed acquisition of bmi by IAG has generated a significant level of concern in the UK especially in Scotland, the North West of England and Northern Ireland.
"We consider that the transaction should be subject to a careful and detailed review and we will continue to work closely with the European Commission to ensure that UK airline passengers will not lose out through the proposed deal."
By Linsey McNeill
