EU Blocks Greek Airline Merger

The European Commission has blocked the proposed merger of Greece's two largest carriers Olympic Air and Aegean Airlines, claiming the combined venture could monopolise air travel in the country. It said the deal "would have led to higher fares for four out of six million Greek and European consumers traveling on routes to and from Athens each year".

The two airlines have responded to the ruling. “The EC Decision will have negative consequences for consumers as well as our country’s economy, while it will benefit foreign competitors,” said Andreas Vgenopoulos, Chairman of the Board of Directors at Olympic Air’s parent company Marfin Investment Group. Meanwhile, Aegean Airlines’ Chairman, Theodore Vassilakis said: “An important opportunity for a consolidated representation in the European aviation market has been lost.”

The companies have said they will “review the final document of the EC decision” and following internal consideration and consultation with advisers will outline their future plans “within the framework of existing legislation”.

Source: The HUB