Decision On Aegean-Olympic Air Merger Expected In October 2013

The European Commission is expected to give a decision on 16 October 2013 on whether to approve or block the acquisition of Olympic Air by Aegean Airlines, according to recent media reports.

The two Greek carriers had made an attempt to merge in 2010 but the EU competition authorities had blocked the deal citing anti-competitive concerns.

According to Aegean Airlines and Olympic Air, the merger offers their only hope of survival.

“Given the state of the Greek economy and the importance of inbound tourism, competition between two home carriers is currently something of a luxury,” John Strickland, director of JLS Consulting in London, told the international press.