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European Commission Spokesman's Briefing for 99-09-22
From: EUROPA, the European Commission Server at <http://europa.eu.int>
MIDDAY EXPRESS
News from the Spokesman's midday briefing
Nouvelles du rendez-vous de midi du Porte-Parole 22/09/1999b
CONTENTS / CONTENU
[01] Commission prohibits Airtours' takeover of First Choice in UK leisure
travel sector
Résultats de la Commission de ce jour - Outcome of today's Commission
meeting
[01] Commission prohibits Airtours' takeover of First Choice in UK leisure
travel sector
The European Commission has prohibited the acquisition by Airtours plc of
First Choice Holidays plc. The proposed operation affects the supply of
foreign package tour holidays to UK residents and in particular, those
package holidays (a large majority of the total) made by air to the popular
'short haul' destinations in the mainland and islands of Southern Europe
and North Africa. The market structure is already highly concentrated with
four vertically integrated companies having some 80% of the short-haul tour
operating market between them. The rest of the market is fragmented amongst
a large number of much smaller players, none of them fully integrated and
most with shares of 1% or less. The takeover would create a market
structure in which the remaining three vertically integrated companies
would collectively have a dominant position, as First Choice would
disappear both as a competitor in its own right and as a supplier of
charter airline seats and travel agency distribution to the non-integrated
operators. Airtours has proposed undertakings which were not, however,
sufficient to prevent the creation of a position of collective dominance.
MIDDAY EXPRESS
From EUROPA, the European Commission Server at http://europa.eu.int/
© ECSC - EC - EAEC, Brussels-Luxembourg, 1995, 1996
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