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MLex Comment: Pre-existing code-share agreements may not provide comfort to merging airlines

By Dafydd Nelson ( February 22, 2010, 16:13 GMT | Comment) -- Airlines seeking to buy out or merge with their joint-venture or code-share partners should be wary that significant competition concerns could arise even where their existing agreements have been assessed under antitrust rules. Two recent decisions published by the European Commission concerning Lufthansa illustrate that, in the context of a merger review, interest from a rival carrier in purchasing the target asset can eliminate the once-perceived benefits, as far as competition law is concerned, provided by a co-operation agreement.Airlines seeking to buy out or merge with their joint-venture or code-share partners should be wary that significant competition concerns could arise even where their existing agreements have been assessed under antitrust rules....

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