CITYFLYER has been sold to British Airways for £75m.
The secretary of state for trade and industry Stephen Byers agreed the acquisition last week. His decision ends 10 months of deliberation since BA first proposed to buy its former franchise partner.
Byers ignored opposition from Virgin Atlantic, which matched BA’s bid for the airline. Virgin is concerned that BA’s hold on Gatwick slots will be too strong.
The Government has restricted BA to 60% of slots in any 2hr time period, but is not asking it to give up any slots if it oversteps the limit and has left the airline room for expansion.
Chief executive Bob Ayling said: “There is no requirement for BA to divest slots. The recommendations expressly preserve the benefits of the BA operation at Gatwick and provide us with the flexibility to expand.”