By Bruno Waterfield - 11th February 2004
EU regulators have cleared a merger between Dutch KLM and Air France signalling the take off of Europe’s largest airline.
The European Commission gave the green light after the companies made concessions to boost competition in the air sector.
EU competition chief Mario Monti had expressed concerns over dominance by the new group in Trans-Atlantic and Amsterdam to Paris routes.
But after “the surrender” of 94 take-off and landing slots and assurances from Dutch and French governments that rival carriers will get traffic rights Brussels gave the deal the go ahead.
Commissioners hope the merger will herald a long-awaited shake-up in a sometimes turbulent European air sector.
“The outcome of this case shows that the long-awaited consolidation of the European airline sector can be done in full respect of competition rules,” said Monti.
The €800 million deal is scheduled to be sealed in April cutting the number of major Trans-Atlantic air alliances from four to three.
EU regulators are also reviewing an alliance between Air France and Alitalia seeking further concessions before approval.
The Italian carrier has longer-term merger ambitions with the giant KLM/Air France airline.
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