ALITALIA/VOLARE (Conclusion of investigation)
PRESS RELEASE
PRESS RELEASE
Antitrust Authority gives conditional go-ahead for Alitalia-Volare merger
Alitalia must give up two pairs of domestic slots: one from Linate to Lamezia Terme, one from Linate to Bari. Two pairs from Linate to Paris-Orly must also be given up in order to comply with an EU Commission decision
The Italian Competition Authority, at its meeting on 5 July 2006, determined that the merger of Alitalia and Volare cannot be authorized as originally proposed. It therefore decided to authorize the purchase of Volare on the condition that Alitalia give up two pairs of domestic slots from Linate on the Linate-Bari and Linate-Lamezia Terme routes which are flown by Volare using the VA code. In order to comply with the EU Commission's decision regarding the Alitalia-Air France alliance, Alitalia must also be prepared to give up two pairs of slots on the Milan–Paris route to existing operators on that route who may request them before 11 November 2007. The slots released by Alitalia will be added to a pool and may be used exclusively for the Milan-Paris route for a period of six IATA seasons.
The reduction in slots is on routes where the merger would create a dominant position and, more specifically, where Alitalia's capacity, being well in excess of the critical threshold set by the Commission in its decision on the Air France-Alitalia alliance, could never be matched by present or potential competitors.
The Authority took into consideration the characteristics of the Milan airport, where congestion and regulation impede the entry of new operators and heavily condition the activities of those already present, and where Volare now has 12 pairs of slots.
As far as the two pairs of domestic slots are concerned, these will be released based on the chronological sequence of requests received and may be used only for the same routes (Linate-Bari and Linate-Lamezia Terme) for a period of four IATA seasons.
The pairs of slots are to be released to meet requests by airlines other than Alitalia or its subsidiaries or associated companies or companies belonging to the Sky Team alliance, within the limits imposed by the ministerial decree of 5 January 2001 (the so-called "Bersani-bis" decree).
At the expiry of their assigned periods of use, slots used continuously by the assignees will fully reacquire their grandfather rights (the right of pre-emption by the airline which used the slots in the previous season).
Requests for the release of slots must be directed to Alitalia with a copy to the Authority. The measures covering the release of slots will be operative beginning with the next IATA season (Winter 2006-2007).
Every six months, at the beginning of each IATA season, Alitalia must furnish a report to the Authority regarding the release of the slots, indicating the requests received, with a copy of Alitalia's acceptance and Assoclearance's confirmation that the airline codes for the slots in question have been changed.
Rome, 5 July 2006