The European Commission (EC) has given the proposed tie-up between Qatar Airways (QR, Doha Hamad International) and Meridiana fly (Olbia) the go-ahead a circular sent by management to the Italian carrier's workforce has said.
According to Reuters, the EC said it found no antitrust concerns with the partnership which is now expected to close by month-end.
"The Commission concluded that the proposed acquisition does not raise competition concerns because the overlap in routes is either very limited or has low traffic density," the letter said.
Under the terms of the agreement, Qatar Airways will control 49% of a newly formed holding company ("HoldCo") in which Alisarda, Meridiana's parent firm, will have a 51% stake. It will contribute the entire outstanding share capital of Meridiana fly S.p.A. which owns Air Italy Holding S.r.l. and Air Italy (2005) S.p.A. (a production carrier which leases its aircraft to Meridiana), Wokita s.r.l. (a tour operator), and Meridiana Maintenance S.p.A. (Meridiana's aircraft MRO provider). It is recalled that Alisarda is itself owned by the Aga Khan Foundation.
"By April, the deal will close with Qatar Airways holding 49% and Alisarda owning 51%. Once this has occurred, there will be an ensuing review of our corporate structure," the letter ended.
For the deal to proceed, Qatar Airways had insisted Meridiana effect painful cuts including the laying off of 396 personnel and a 20% pay cut for Meridiana fly pilots. In return, however, Qatar Airways' CEO Akbar al Baker has suggested the Meridiana may be re-equipped with an unspecified number of B737-8s given the aged nature of the Sardinia-based carrier's current fleet.
