26 January 2009

EC wakes up - LH expansion might be an issue

I like LH - another of my favorite airlines - but I have to say I have been worried at the extent of their expansion. It raises a number of competitive issues in the consolidation of the airline industry.

I think by now you all know my position. Consolidation by itself is bad and no panacea for bad airline behavior that got us here in the first place.

Anyway it seems that the European Community has finally woken up to the same set of issues and is launching (albeit a little late) a review of probably the LEAST competition restrictive deals of LH. A bigger issue should have been the OS+LH post the LH-LX merger. But - that is for the boys and girls in Brussels to go figure out. (Hint Brussels airlines is used by a lot of Eurocrats!)


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