Commission initiates proceedings on Lufthansa and Brussels Airlines proposed concentration

The Official Journal of the European Union has published on February 14th, 2009, informations from the Commission on its decision to open proceedings in the case of concentration communicated by Lufthansa and SN Holding (Brussels Airlines). Interested third parties must submit their observations not later that fifteen days after publication.

On January 26th 2009, the Commission decided to initiate proceedings in the case of concentration between Lufthansa and SN Holding after finding that the notified concentration raises serious doubts as to its compatibility with the common market. The initiation of proceedings opens a second phase investigation with regard to the notified concentration, and is without prejudice to the final decision on the case.

The Commission’s initial market investigation indicated that the proposed acquisition could significantly impede effective competition and so raises serious doubts as to its compatibility with the Single Market, at least as regards passenger air transport on a number of routes between Belgium and Germany and Belgium and Switzerland. The decision to open an in-depth inquiry does not prejudge the final result of the investigation.

Companies concerned by concentration operation

  • Lufthansa (Public, FRA:LHA) is a full-service air carrier with hubs at Frankfurt and Munich airports, and a base at Düsseldorf. Lufthansa also controls Swiss International Air Lines Ltd. (Swiss), based at Zurich airport, Air Dolomiti, Eurowings and low-cost carrier Germanwings.
  • SNAH (Brussels Airlines) is the holding company of SN Brussels Airlines, the Belgian commercial airline active in the transport of both passengers and cargo mainly in Europe and some destinations to Africa.

The Commission now has 90 working days, until June 10th 2009, to take a final decision. Commission therefore invites interested third parties to submit their observations on the proposed concentration  to the Commission.

In order to be fully taken into account in the procedure, observations should reach the Commission not later than 15 days following the date of this publication. Observations can be sent to the Commission by fax: +32 2 296 43 01 / 296 72 44;  or by post, under reference COMP/M.5335 — Lufthansa/SN Holding (Brussels Airlines), to the following address:

European Commission
Directorate-General for Competition
Merger Registry
J-70
B-1049 Brussels