EC to investigate Martinair takeover

September 09, 2008 7:06 AM

The European Commission plans to investigate the proposed takeover of Martinair by Air France-KLM. The commission is worried the purchase will reduce competition on the routes between Amsterdam and Curaçao and Aruba.

After the first postponement last month it got out that the dominance of both companies on the Antilles route would play an empathetic part.  At this moment, KLM flies to Curacao every day and Martinair five times a week.  ArkeFly is the third company on this route.As well as Martinair it will increase the frequency to daily flights. 

Around mid August, KLM made some propositions to remove the concern of the committee, but in vain. 

Also the low-cost-company Ryanair has lodged an objection.  The decision of the European Committee was not a surprise.  Martinair’s top executive Paul Gregorowitsch in an interview last week that he anticipates the postponement.  KLM counts on a final decision at the end of October. The commission, which blocked an attempt by KLM to take the airline over 10 year ago, has said it will reach a definite decision by January 2009 at the latest.

Both KLM and Maersk own 50 percent of Martinair’s shares.  KLM has been trying to buy Maersk’s shares since late last year and so becomes the sole owner of Martinair.  The proposal is in Brussels for approval.

 
(Source: Radio Netherlands Worldwide / National Nwespaper Amigoe)

 8 September, 2008