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Is Brussels Too Slow And Restrictive In Take-overs?  
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Posted (5 years 10 months 2 weeks 2 days 14 hours ago) and read 2527 times:

Lufthansa have currently two major stumbling blocks being built up by the Brussels bureaucracy- Austrian Airlines and SN-Brussels takeovers are at risk.
While it is true that the eggheads are paid to watch out for consumer-protection and monopolistic absurdities,they should be intelligent enough ,to make a differnec between viability of some air-routes that only support on operator and true lack of competition.
In the very case of Austrian Airlines, four competitors have filed charges against LH (AF,Ryanair,Niki and Air Berlin) ,mainly because of the 500M€ charge being taken over by the Austrian government. IN the meantime the airline is struggling for survival and if things don't move fast,the take-over will be halted,because of bancrupty by OS.
The case of SN is investigated because of "monopolisitc conditions between Belgium and Germany/Switzerland" .
Theoretically both take-overs could be prevented by Brussels with the result that two more airlines will default - an attitude incomprehensive to me.
It does not take months to investigate a situation-you have existing traffic-patterns,open markets ( not occupied by any other competitor willing to jump in..) and two airlines willing to be married with LH ! Where is the consumer screwed ? Belgium has Easyjet flying into Switzerland and Austria has a situation whereby the government will anyhow have to pay for the OS deficit -in case of default the money is lost and all jobs gone.
Having lived in Brussels for 15 years I have some slight understanding how lobby-groups work and operate.In this particular case they operate to slow down two mergers they can't change anyhow-it's either LH or nobody !
Austrian case
SN Brussels Case

[Edited 2009-02-06 02:56:00]


Please respect animals - don't eat them...
7 replies: All unread, jump to last
 
User currently offlineWAC From United States of America, joined Nov 2008, 275 posts, RR: 0
Reply 1, posted (5 years 10 months 2 weeks 2 days 14 hours ago) and read 2487 times:

'I think along with 99% of the world you don't understand the workings of the EU.
Remember the EU gave Europe an open aviation market. So now they can't be in anyway restrictive.
Slow yes but that's because of national government restricting the powers etc of the EU. So you question should be "do the EU member states restrict the European Commission in implementing a coherent open market for the commercial aviation market (the answer in my opinion is no).
As for OS yes LH had unfair competitive advantage because other prospective bidders didn't know the Austrian government was ready to take on the debt (this is the reason AF is complaining)
SN. well it's a very lucrative market in business class sense and so does need looking into it.
But that said I was say the EC (European Commission) will NOT rule against the above acquisitions due to the fact the EC is for consolidation within the EU let alone the aviation market as long as there aren't any anti-competitive practises. LH as not done in recollection unlike AZ, AF BA etc.


User currently offlineAustrianZRH From Austria, joined Aug 2007, 1404 posts, RR: 0
Reply 2, posted (5 years 10 months 2 weeks 2 days 13 hours ago) and read 2453 times:



Quoting WAC (Reply 1):
As for OS yes LH had unfair competitive advantage because other prospective bidders didn't know the Austrian government was ready to take on the debt (this is the reason AF is complaining)

Neither did LH. It was merely a condition LH set for buying OS...



WARNING! The post above should be taken with a grain of salt! Furthermore, it may be slightly biased towards A.
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 3, posted (5 years 10 months 2 weeks 2 days 12 hours ago) and read 2394 times:

Air France had all opportunities to impose or request the same conditions than LH- if they didn't -it's their fault.Comming back once a deal is struck and complaining "..we didn't know" ,is a sign of bad negotioation.
Again- the famous 500M€ charge that Austria is willing to pay will have to be paid under any circumstances..Brussels is just painstakingly slow in making decisions.This whole monster-organisation is just too,slow,to inert and not adapted to cope with situations request swift action.



Please respect animals - don't eat them...
User currently offlineAustrianZRH From Austria, joined Aug 2007, 1404 posts, RR: 0
Reply 4, posted (5 years 10 months 2 weeks 2 days 10 hours ago) and read 2289 times:



Quoting Beaucaire (Reply 3):
This whole monster-organisation is just too,slow,to inert and not adapted to cope with situations request swift action.

Just today Austrian television reported that neither LH nor OS have requested the investigation of the deal by the anti-trust authorities in BRU yet. Thus, up to now the EU can't go to work as officially they don't know the deal is planned  Smile.



WARNING! The post above should be taken with a grain of salt! Furthermore, it may be slightly biased towards A.
User currently offlineSeemyseems From United Kingdom, joined Jan 2009, 971 posts, RR: 7
Reply 5, posted (5 years 10 months 2 weeks 2 days 8 hours ago) and read 2195 times:

I wonder if SN will ever grow... maybe some newer B737's and some newer long haul crafts, the A333's are still very good!


seemyseems
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 6, posted (5 years 10 months 1 week 4 days 11 hours ago) and read 1977 times:

http://www.iht.com/articles/ap/2009/...siness/EU-EU-Austrian-Airlines.php

this investigation might be a stopping-stone for the take-over of OS by Lufthansa.
If the investigation draws on for months,that's the end for the Austrian carrier and might mean the degrading into a small-sized regional carrier ..



Please respect animals - don't eat them...
User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3806 posts, RR: 29
Reply 7, posted (5 years 10 months 1 week 4 days 4 hours ago) and read 1857 times:



Quoting Beaucaire (Reply 6):
the Austrian carrier and might mean the degrading into a small-sized regional carrier ..

Which is an interesting thought for the airline history side of my aviation interests insasmuch as it essentially describes what Austrian Airlines was from its founding in 1957(?) until well into the late 1970s to early 1980s... aside from a short-lived longhaul venture or two with leased aircraft. Seems to me that "small-sized regional carrier"* has been the niche in which Austrian Airlines has enjoyed its greatest success, past and present. Feel free to correct me if the profit & loss numbers indicate otherwise.

*which by my definition is a network limited to Europe and the Mediterranean rim.


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