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EU: Foreign airline investment under scrutiny

By  |  April 7, 2014

The European Commission announced Monday it is probing possible violations of shareholding rules by foreign investors in four EU airlines, say reports.

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    Shareholders from the US, Asia and the Middle East are under scrutiny for their ownerships in various domestic airlines. The Commission is looking at whether the companies violate rules that require member state-based investors to hold at least a 50 percent share in the airlines for a foreign investor to receive and EU operating license. The rules, say reports, allow domestic bodies to effectively control EU airlines.

    In question is Delta’s investment in Virgin Atlantic, China-based HNCA’s investment in Cargolux, Korea Air’s investment in Czech Airlines and The United Arab Emirates-based Etihad’s ownership in AirBerlin.

    Reports say the Commission is paying particular focus to Etihad’s investment in the German airline.

    So far, the Commissions has requested information from the foreign investors regarding their compliance with EU competition rules.

    Full Content: DW

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