Brian Adam, MSP for Aberdeen Donside, has called again on the Office of Fair Trading (OFT) to ask the European Commission to refer the International Airlines Group (IAG) takeover of BMI back to the UK body.
IAG who own British Airways have tabled a £172 million bid to take over BMI, if the takeover is approved it would mean every flight between Aberdeen and Heathrow would be operated by IAG, and they would also own more than 54% of the landing slots at Heathrow.
Mr Adam has already written to the OFT to request the referral but in response to a letter from Mr Adam, European Commissioner Joaquin Almunia confirmed that no request has yet been made by the OFT.
The European Commission can review the bid to look at the implications for competition and consumers. If it is believed there will be a disproportionate impact in one member state then the OFT can ask the European Commission for the case to be referred back to the UK.
Mr Adam said:
“I am concerned that passengers would receive a raw deal if the bid from IAG to take over BMI is approved.
“It appears that this bid for the loss making BMI is just a way for British Airways to get more landing slots at Heathrow, who will then switch from flights to Aberdeen to more profitable international routes.
“For my constituents and businesses in Aberdeen this will mean less flights from the city that connect to international destinations through Heathrow and a higher price to get down to London in the first place.
“I believe that the OFT should be looking at this takeover as its impact would be felt by passengers in Aberdeen, Scotland and the rest of the UK, with little difference in other EU countries.
Mr Adam continued:
“If the deal is not referred back to the UK I am pleased to see that the Commissioner has said that passengers travelling from Scotland via Heathrow to international destinations will be a ‘core objective’ of their review.”
