EU blocks Olympic, Aegean airlines merger

[January 26, 2011]  BRUSSELS (AP) -- Europe's top competition regulator has blocked the merger between Greek airlines Olympic Air and Aegean Airlines, saying a combined carrier could monopolize Greek air travel.

The European Commission said Wednesday a merger "would have led to higher fares for four out of six million Greek and European consumers traveling on routes to and from Athens each year."

It is the first time the Commission has blocked a deal since it squashed Ryanair Holdings PLC's attempt to take over Aer Lingus Group PLC in 2007.

When they announced the merger last February, Olympic and Aegean cited Greece's dire economic situation as one of the reasons for a combination. Greece received a euro110 billion ($151 billion) international bailout in May.

[Associated Press]

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