Joint control over the airline by Air France-KLM, Delta and the Virgin Group will not impede air cargo competition on the continent, the European Commission said.
The European Commission earlier this week approved the proposed joint takeover of Virgin Atlantic Ltd. by Air France-KLM, Delta Air Lines and the Virgin Group, citing that it would not impede competition in the European Economic Area.
Specifically, the commission’s review covered Air France-KLM’s recently proposed 31 percent joint-controlling interest in Virgin Atlantic, and its potential impacts on the air transport of passengers and cargo, as well as aircraft maintenance services.
The EC said the transaction is unlikely to impede air cargo competition, “notably because Air France-KLM, Delta and Virgin Atlantic are not close competitors and continue to face strong competition on the affected cargo routes,” particularly from Lufthansa and Cargolux.
The airlines notified the commission of the proposed Virgin Atlantic transaction on Jan. 8.
The commission previously approved the acquisition of joint control over Virgin Atlantic by Delta and the Virgin Group in June 2013. Its Feb. 12 decision now approves the acquisition of joint control by Air France-KLM, Delta and Virgin Group over Virgin Atlantic by way of share purchases.
EC finds no cargo concern with Virgin Atlantic takeover
