-EU launches anti-trust investigation into Onex acquisition - Brief Article

Airline Industry Information, Oct 20, 1999

The European Union (EU) has launched an anti-trust investigation into the proposal by Onex Corp to acquire and merge Canadian Airlines and Air Canada. A spokesperson for the European Commission indicated that initial inquiries had suggested that the merger, which may result in the new company joining the Oneworld alliance headed by American Airlines, would make it more difficult for competing airlines to obtain takeoff and landing slots at London-Heathrow airport. The merger and proposed membership of Oneworld would also mean that Oneworld would be the only global airline alliance with a direct service between London and Canada, because only British Airways, which is also a Oneworld member, and the two Canadian carriers have the authorisation to fly this route. The launching of the probe will give the EU four months to decide whether the merger complies with EU antitrust laws according to the Associated Press.

Commenting on the EU probe, a spokesperson for Onex said that the investigation was normal procedure for a transaction of this kind and that the investigation will not delay the meeting of Air Canada shareholders scheduled for 8 November.

AIRLINE INDUSTRY INFORMATION-(C) 1997-9 M2 COMMUNICATIONS LTD