CityJet face probe over affect of VLM takeover on London City
04.01.08
Dublin based Air France subsidiary Cityjet's operations at London City Airport are to be investigated by the UK Office of Fair Trading. The move follows the announcement that Air France-KLM has agreed to buy VLM Airlines.
The move will see VLM, which has the Docklands airport as a hub for most of its services, link up with the CityJet and give Air France-KLM control of more than 50% of the flights at London City. This gives rise to the possibility of dominance at the airport, which will be examined by the Office of Fair Trading.
However, the purchase of VLM by Air France-KLM is less likely to raise competition concerns with the European Commission, because in a European context VLM is a small regional airline.
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