Bundeskartellamt clears acquisition of TUIfly’s city-carrier business by Air Berlin

In merger control proceedings the Bundeskartellamt has cleared the takeover by Air Berlin of TUIfly’s city-carrier business. Air Berlin can thus take over TUIfly‘s city-carrier route portfolio, including the aircraft capacity and staff. The portfolio consists of 117 routes to Austria, Egypt, Spain, France, United Kingdom, Greece, Croatia, Israel, Italy, Morocco, Portugal, Sweden, Tunisia and Turkey and seven routes within Germany. The destination focus is clearly Italy with 55 routes.

The investigations conducted by the Bundeskartellamt have revealed that there are only a few route overlaps between Air Berlin and TUIfly and that Air Berlin has only transported a low number of passengers to some of these destinations (e.g. Italy). In addition, there are sufficient competitors on the relevant routes or flying to the relevant destinations.

Originally reciprocal participations of 19.9 % respectively by Air Berlin in TUIfly and TUI in Air Berlin were planned, to which further rights were attached. The participating companies have abandoned these plans. The participations were reduced to 9.9% on each side and the parties decided to forgo the rights attached to the acquisitions. The reciprocal participations in the form now notified thus no longer fulfil the elements of concentration.

The parties have also stated that Air Berlin will now not acquire a stake in TUIfly and that TUI's 9.9 % participation in Air Berlin will only be effected after clarification of any remaining competition law concerns with the Bundeskartellamt.

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