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Recent EU airline merger remedies aim to shift the risk

( November 29, 2024, 16:44 GMT | Insight) -- Commitments that the European Commission extracted from Korean Air and Lufthansa in their recent deals were designed to equip remedy takers with more than just takeoff and landing slots, and also put the burden on the merging parties to make sure competitors emerge. For IAG-Air Europa, the fact that the two companies were both network carriers operating a large number of overlapping routes from the same hub made finding a suitable remedy ultimately unsuccessful. The remedies that Korean Air and Lufthansa had to offer to win EU approval for their acquisitions were designed to increase the certainty of entry on the problematic routes and shift the risk of non-entry from the public to the merging parties, according to today’s EU merger policy brief (see here)....

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