EU's Almunia: mulling new IAG concessions for bmi
Wed Mar 28, 2012 3:23pm BST
BRUSSELS (Reuters) - EU regulators are assessing extra concessions offered by British Airways owner IAG (ICAG.L) to gain approval for its bid to buy Lufthansa's (LHAG.DE) British unit bmi, after initial proposals fell short, the EU's antitrust chief said on Wednesday.
IAG wants to buy bmi to boost its share of runway slots at London's Heathrow airport to about 52 percent from 43 percent, allowing it to launch lucrative new long-haul routes.
EU Competition Commissioner Joaquin Almunia said IAG submitted additional concessions on Tuesday, on top of others offered earlier this month.
"My services are analysing these. I have a meeting with the legal services and the chief economic team this afternoon. The opinion of the stakeholders consulted was negative, we take this very seriously," Almunia told a news conference.
He was referring to comments from IAG rivals and consumers during a market test of IAG's proposals.
"I very much hope these additional proposals will change our assessment," he said.
Two people familiar with the matter said IAG had initially offered to cede 10 slots for some domestic and non-domestic routes at Heathrow but has now increased the number to 14.
The Commission is due to decide by Friday whether to clear the deal or open an in-depth investigation that could take up to four months.
Rival and failed bmi bidder Virgin Atlantic VA.UL has called on antitrust regulators to block the deal, saying it would harm competition and push up prices.