AGCM

PRESS RELEASE

AIR TRANSPORT: ANTITRUST LAUNCHES INQUIRY INTO ACQUISITION OF WINDJET BY ALITALIA-CAI

The operation could restrict competition on nine routes: Catania-Bologna; Catania-Milano Linate; Catania-Milano Malpensa; Catania-Pisa; Catania-Rome; Catania-Venice; Palermo-Milan; Palermo-Rome;  Palermo-Turin

In a meeting on June 6th, the Autorità Garante della Concorrenza e del Mercato decided to initiate an investigation to determine whether the takeover of WindJet by Alitalia-Cai could eliminate or reduce competition in a substantial and lasting manner. According to the Antitrust, the operation creates an overlap between the activities of Alitalia-CAI and WindJet on nine national routes with signifiant market shares, namely Catania-Bologna, Catania-Milano Linate; Catania-Milano Malpensa; Catania-Pisa; Catania-Rome; Catania-Venice; Palermo-Milan; Palermo-Rome; and Palermo-Turin.

The examination of the concentration will also consider the competitive value of Alitalia-CAI's takeover of new slots on a single leg, such as Milano Linate, where the slots are subject to quota restrictions for structural and regulatory reasons: Alitalia-CAI could, in fact, modify the destination of the WindJet slots within the context of its own strategizing against its competitors.

According to the Authority, the competitive advantage that the operation would give Alitalia-CAI will also have to be considered in light of the economic and reputational entry barriers that characterize the market for passenger air transport on scheduled flights: WindJet, in fact, has long represented one of the nation's most well-known low cost operators, and has traditionally concentrated its own activities on the routes to/from Sicily, building up a name for itself among consumers on these routes.

The investigatory proceeding shall be concluded within 45 days.

Rome - 7 June 2012