EU regulators give Aegean Airlines approval to takeover Olympic Air

By IVCPOST Staff Reporter

Oct 09, 2013 09:15 AM EDT

European Union regulators gave approval to Aegean Airlines to purchase Olympic Air. The approval also paved the way for the formation of the biggest airline in Greece. Two years ago, the Brussels-based regulator blocked a previous attempt by Aegean to acquire its rival Olympic Air because the transaction would form a monopoly in Greece's commercial airline business.

However, the EU approved the deal today because Olympic was still on the road to closure and Aegean would still remain as the only carrier in the country. EU Competition Commissioner Joaquin Almunia told reporters, "Because of the ongoing economic crisis and Greece and Olympic's very difficult financial situation, Olympic would be forced to leave the market soon, without or without the merger. We approved the merger because it has no additional negative effect on competition."

Last year, Aegean said it would pay EUR 72 million or USD 97 million to acquire Olympic Air. Marfin Investment Group purchased Olympic Air from the Greek government in 2009 but the carrier has not profited ever since it was acquired.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics