UK's Office of Fair Trading (OFT) passes BA-bmi takeover to the European Commission
In a classic civil service move OFT has decided not to review BA-owner International Airline Group's (IAG) deal to buy bmi from Lufthansa. It has passed the decision on to the European Commission. This will have further repercussions regarding the internal fitment of Heathrow T2, and also Lufthansa’s cash flow.
The Commission has until 16 March to decide, although the deadline may be extended.
Leading the opposition to the deal is Virgin Atlantic which would lose important regional links previously operated by bmi. It says that passengers could face higher fares and reduced services linking the North West, Scotland and Heathrow if British Airways succeeds in taking over rivals bmi, Virgin Atlantic has claimed.Source
: AERBT and http://www.oft.gov.uk
Meanwhile, the European Commission confirms IAG has offered concessions on proposed BA takeover of BMI but no details on scale have been made public.
The provisional deadline for the EC to make a decision on the takeover of bmi has also been put back to March 30 from the original date of March 16.