Airline mergers, joint ventures (JVs) and bailouts counting as State Aid can lead to competition concerns where they would result in the airline or JV having a very strong market position or monopoly on certain routes. Therefore, the competent Competition Authority may choose to require the airline(s) involved to make “Commitments” to help remedy these concerns, for example through divesting airport slots to competing carriers to allow them to compete on the routes of concern, or through offering favourable interline agreements to other carriers.
How we helped
Steer has acted as Monitoring Trustee (as the technical expert together with legal experts) with the remit of enforcing the Commitments relevant in each particular case. The cases we have worked on include:
We provided advice on applications by competitors for slots, reviewing their eligibility and the credibility of their business plans to operate the route. In addition, we reviewed interline agreements and adjudicated in issues of interpretation and dispute.
Successes and outcomes
We have ensured that the Commitments in the different cases were adhered to so that no further competition concerns were raised. Slots have been transferred to a number of different competitors enabling them to operate on the routes of concern, and interline agreements have been concluded allowing other airlines to compete on routes involving feeder services operated by the airline offering the Commitments.
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