British Airways’ ú75m purchase of its franchise partner Cityflyer has been referred to the Monopolies and Mergers Commission after fears the deal would leave it with almost half of Gatwick’s slots.
The MMC is due to make its report on the deal by April 28 with an announcement expected in the early summer.
Cityflyer managing director Brad Burgess said: “We knew there was a risk of an investigation and we are disappointed. The MMC will want to know about routes, slots, competition and our history.
“We are still optimistic, but cannot escape the fact that slots are an issue.”
Burgess argued that as Cityflyer already uses its slots on BA’s behalf a takeover would make no difference. However, Virgin Atlantic claims it was not allowed to bid for Cityflyer to increase its own Gatwick slot holding – a claim denied by the BA carrier.
Cityflyer has 12% of Gatwick slots and BA has 28%.
BA is steadily building its Gatwick presence and is expected to shift more long-haul routes to the airport from more congested Heathrow. This policy has been criticised by smaller carriers – especially charters, who feel they are being squeezed out.