|Quoting VV701 (Reply 53):|
Is there any argument that BA should be penalised for buying BD in a way that LH was not penalised for buying LX, OS and SN simply because their home hub airport is more severely slot restrained? LH clearly already had a greater proportion of FRA slots than BA can even dream of operating at LHR.
IAG and LH are operating in a free market. If other airlines want BD's slots all they need to do is table a better offer to LH than that made by IAG.
BA have 6 daily LHR-BRU flights, 3 daily LHR-BSL flights, 6 daily LHR-DUS flights, 8 daily LHR-FRA flights, 8 daily LHR-GVA flights, 4 daily LHR-HAM flights, 7 daily LHR-MUC flights, 2 daily LHR-STR flights, 6 daily LHR-TXL flights, 4 daily LHR-VIE flights and 4 daily LHR-ZRH flights. These flights, all 58 of them, are flown in face to face competition with Lufthansa Group airlines. Yet despite this LH has already sold six former BD LHR daily slot pairs to BA.
It is more than clear that LH already have or would meet the LHR slot needs of all of their Group airlines and their Star Alliance partners. And if they were willing to sell 6 daily slot pairs to BA, I am totally sure that LH would be prepared to sell BD LHR slots to any Sky Team members or non-alliance airlines as, unlike BA none of them are in direct competition with Lufthansa Group airlines out of LHR.
|Quoting AIR MALTA (Reply 59):|
If ever BA gets the deal, I do not see why BA should give up some slots. They only overlap on 4 routes, EDI, ABZ, MAN and DME. If BD can not make those routes work, I don't think VS would manage to do that.
Ultimately, the best for BD, BA and the London Region is to have a stronger BA.
There is always difficulties to understand the EU system on A.net I have noticed.
So again, comparing how LH
came together or for that sake BA
makes no sense. The EU has clear rules for how they should investigate competition.
Meaning the EU look on a IAG
takeover of BMI
would be different and any comparison of previous LH
takeovers will be like comparing apples and oranges. Read up on what and how the EU will examine when there is a possible takeover.
First it will see if increasing from the 40 odd % BA
has to 50 odd % at LHR
will reduce competition and thus might be bad for the citizens. The EU is said to not want more than 20-25% in an ideal market.
Lets remember that the EU has no mandate to investigate already dominant marketsituations at airports so discussing the amount of slots AF
has at CDG
is pointless that can't be argued under current EU legislation and thus wont be part of any evidence given. The EU only has the authority to deal with new developments.
If you don't like this you are not alone, many EU politicians want this new power for the EU however the EU council don't. But if you think its unfair petition your politicians to give the EU more power and that might change...
Until then the EU can not and thus will not look into existing monopolies or shewed competition.
The EU will also look at all specific routes operated, citypairs served and see if competition is altered on them. (here I assume we will see the same situation as we have seen when LH
has taken over some other European airlines. IAG
will have to give up some slots if another airline wants to fly the route etc.)
As far as I can see, the matter will be if LHR
is seen as an isolated market or if London as a whole including LGW
and Luton is seen as one market. The latter being better for a proposed takeover.
In general, IAG
have reached numbers that are big enough to allow the EU to stop such a proposal, that doesn't mean they will.
I think its important to understand the EU and how its institutions work and what their mandate is. Otherwise we keep hearing the same boring mantra about the number of slots other carriers have at their hubs. Something the EU doesn't have mandates to look into and shouldnt be part of how they investigate and judge the issue.
Then we end up with Murdoch reasoning. A directive stating how a banana should be, ie no GE
bananas ends up to be about look and colour in Murdochs newspapers. Ridiculous and not true, but in the eyes of the british public this deliberate lie of those newspapers is taken as gospel today.
The directive hasnt existed for a few years for that sake...
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