Menzies and Airline Services merger raises competition concerns

posted on 9th August 2018 by Justin Burns
Menzies and Airline Services merger raises competition concerns

The UK government’s Competition and Markets Authority (CMA) is investigating the completed acquisition by Menzies Aviation (UK) Limited of part of the business of Airline Services Limited.

The CMA says Menzies’ purchase of Airline Services will face an in-depth (phase 2) probe unless it “offers acceptable ways of addressing competition concerns”.

The companies both supply UK airlines and airports with support services, including the de-icing of aircraft engines and wings; ground handling (including baggage, ramp, passenger and airside cargo handling); and the cleaning and maintenance of aircraft interiors.

The CMA states on its website: “Following its initial (phase 1) investigation, the Competition and Markets Authority (CMA) has identified competition concerns regarding de-icing services at Edinburgh, Glasgow and London Heathrow airports, and ground handling services at London Gatwick and Manchester airports.

“The merger of Menzies and Airline Services, which are close competitors at these airports, could lead to less choice for the airlines operating there, potentially leading to higher prices and lower quality service.

“Menzies has until 14 August to offer acceptable solutions to address the CMA’s concerns; otherwise the merger will be referred for an in-depth phase 2 investigation.”

More details on the case can be found here on the CMA’s website.