A merger inquiry by the UK competitions watchdog into an aircraft leasing deal between Aer Lingus and CityJet was confirmed today.
The Competition and Markets Authority is investigating a long-term wet lease arrangement between International Airlines Group-owned Irish flag carrier and Cityjet.
The probe is focusing on aircraft used on the London City airport to Dublin route.
The CMA has set a deadline of November 12 for comments, with a decision expected on Christmas Eve.
The CMA said it was “considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
A wet lease agreement is when one airline provides an aircraft, its maintenance, insurance and crew to another.
The CMA’s order does not prohibit the airlines from operating under the wet lease agreement during the course of the investigation.
The CMA issued an initial enforcement order on the two carriers earlier in October.