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Brussels (pte027/06.07.2005/14:17) - The German airline Lufthansa http://www.lufthansa.com has bought Swiss International Air Lines in a deal which cost about 310 million euros (370 million dollars). It is the second-biggest merger in the European aviation sector following that of Air France and KLM a year ago.
Approved by the European Commission on Tuesday, the purchase is still subject to both parties surrendering take-off and landing slots at Zurich and Frankfurt airports, as well as other concessions.
"In light of these commitments, the commission has concluded that the transaction would not significantly impede effective competition," said the commission, the body that regulates competition in the European Union.
Swiss has suffered huge financial problems since 2001, when the formerly-named Swissair collapsed. An increase in low-budget airlines in Europe has contributed to Swiss' decline.
Air carrier Lufthansa has acquired its Swiss counterpart in order to boost its competitive position in Europe and to expand its international network.
About air consolidation in Europe, competition commissioner Neelie Kroes said: "I welcome (it), but it should not lead to higher prices or reduced choice of carrier. The commitments given by Lufthansa ensure that competitors will be able to offer new services in competition with the merged company."
"This is a partnership for all our customers," Chairman and CEO of Lufthansa Wolfgang Mayrhuber said in a statement.
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