Airport services merger receives provisional clearance

The Competition and Markets Authority (CMA) has today (Friday, December 14) provisionally cleared Menzies Aviation’s takeover of part of Airline Services’ business after an in-depth investigation allayed competition concerns.

The two firms supply airlines in the UK with a variety of support services, including the de-icing of aircraft and ground handling.

Global operator Menzies provides services for both Manchester and Liverpool John Lennon airports.

An initial Phase 1 probe raised concerns that the merger could restrict choice for airlines at a number of key airports in England and Scotland for both de-icing and ground handling, potentially leading to higher prices or a worse service.

These concerns led to the merger being referred to a group of independent CMA Panel members for an in-depth Phase 2 investigation.

The CMA has today issued its provisional findings.

Based on a thorough evaluation of the wider evidence base in the Phase 2 inquiry, it has found that the market for ground handling services is particularly dynamic, with a strong recent history of companies entering the market to compete for contracts.

With regard to de-icing services, the CMA has found that competition between Menzies and Airline Services is very limited, such that the merger would not lead to a substantial lessening of competition.

The CMA is currently inviting comments on its findings until January 9, 2019.

It will then consider any submissions it receives before reaching a final decision, the deadline for which is January 28, 2019.

In April this year Menzies Aviation announced it had acquired Stockport-based de-icing specialist Airline Services from Airline Services and Components Group Limited.