LONDON (Thomson Financial) - The UK's Office of Fair Trading said it is
considering whether to accept undertakings by Air France-KLM in relation to its
acquisition of regional carrier VLM Airlines N.V.
In a statement, regulator warned that it will refer the merger to the
Competition Commission if it does not get suitable undertakings.
It said it is concerned the merger will substantially lessen competition in
providing scheduled flights for business travel between London City Airport and
Amsterdam's Schipol airport.
It has suspended any referral as Air France-KLM has offered to divest a
sufficient number of take-off and landing slots at London and Amsterdam to an
upfront buyer.
The OFT said it will now consider Air France-KLM's undertakings proposal
further.
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