European and U.S. competition authorities in the past few days approved Lufthansa German Airlines' planned acquisition of Swiss International Air Lines, clearing the carriers to begin integrating flight schedules and other customer programs. In a statement issued today, the European Commission said its conditional approval followed commitments by the two carriers to surrender slots at several airports.
Specifically, the two airlines agreed to relinquish slots for a total of 41 daily roundtrip flights at Berlin, Copenhagen, Düsseldorf, Frankfurt, Munich, Stockholm, Vienna and Zurich. EC said it secured other commitments from Lufthansa and Swiss, as well as German and Swiss civil aviation authorities, which agreed not to regulate pricing on long-haul routes. Given these concessions, EC said, "the transaction would not significantly impede effective competition in the European Economic Area and Switzerland."
Lufthansa said approval from U.S. antitrust regulators "has been granted unconditionally."
"Following our successful public purchase offer
(BTNonline, June 24) and the plans to welcome Swiss to Star Alliance, these regulatory approvals mark a further milestone on our joint journey forward," said Lufthansa chairman and CEO Wolfgang Mayrhuber. "In just a few weeks' time, the customers of our two airlines will be feeling the first benefits that our partnership will bring."
The carriers said those benefits would include a wider network, improved flight connections and integrated frequent flyer and airport lounge programs. Much of the coordination is set to go into effect at the start of the 2005/2006 winter schedule. Lufthansa said it would raise its stake in Swiss to 100 percent in 2006, following negotiations to secure Swiss traffic rights.
Lufthansa and Swiss announced cross-border merger plans this spring
(BTN, April 18), advancing European aviation industry consolidation. The deal follows the close of the Air France-KLM transaction last year
(BTNonline, May 4, 2004).