By Simon Zekaria - 6th April 2004
The European Commission has approved an alliance between Air France and Alitalia after the air carriers agreed to surrender a package of take-off and landing slots.
In an announcement on Wednesday, the EU executive said the two companies have reliquished up to 42 sets of slots per day, including 19 at the Paris airports of Charles de Gaulle and Orly.
The commission however said that, in practice, the number of slots that the airlines will have to surrender will be lower because other rivals have emerged to compete on the Paris-Milan, Paris-Rome, Paris-Naples and Paris-Venice routes.
If any current competitors were to leave the scene, the two carriers would have to make some of their own slots available to other rival airlines.
"Consolidation of the European airline sector is a long-due necessity," said EU competition commissioner Mario Monti.
"Today's decision ensures that travellers between France and Italy will continue to have choice of services and will enjoy competition on prices."
In February this year the EU executive also cleared the merger between Air France and KLM, which will build the largest airline group in Europe.
Brussels is also reviewing the impact on competition of the so-called transatlantic 'Skyteam' alliance between Air France, Alitalia and Delta among other carriers.
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