IP/10/1743
Brussels, 17 December 2010
Mergers: Commission approves acquisition of Alpha Flight Group by Dnata
The European Commission has approved, in accordance with the EU Merger Regulation, the acquisition of sole control of the in-flight catering services provider Alpha Flight Group by Dnata which is part of the Emirates group. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Dnata is part of the Emirates group which also comprises the Emirates airline. The Emirates group is wholly owned by the government-owned Investment Corporation of Dubai ("ICD"). Dnata provides airline services, including passenger handling, cargo handling, ramp, maintenance and other technical services for airlines worldwide.
Alpha Flight Group is active in the supply of in-flight catering services to international airlines.
The proposed transaction will give Dnata sole control over Alpha Flight Group. There are no horizontal overlaps between the parties' activities. However, the operation will result in a vertical relationship as Alpha's supply of in-flight catering services is an input for Emirates' airline services. The Commission has examined the effects of the envisaged operation and concluded that there is no risk of vertical foreclosure following the transaction, given the existence of alternatives for catering services at each affected airport and the small share of Emirates in the total demand for in-flight catering services.
The transaction was notified to the Commission on 12 November 2010. More information on the case is available at:
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_6037
