Decision Nº M/03/005 from Competition and Consumer Protection Commission, 2003-03-24

• Jurisdiction: Ireland
• Parties: Buzz,Ryanair
• Date: 24 March 2003
• Decision Date: 24 March 2003
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/03/005

Determination of the Competition Authority

Determination No. M/03/005 of the Competition Authority, dated 24 March

2003, under Section 21 of the Competition Act, 2002

Notification No. M/03/005 – Ryanair Holdings Ltd Acquisition of the buzz airline

service from KLM Royal Dutch Airlines

Introduction

1. On 28 February the Competition Authority, in accordance with Section 18 (1) of

the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a

proposal whereby Ryanair Holdings plc (“Ryanair”) would acquire the buzz

airline service (“buzz”) from KLM Royal Dutch Airlines.

The Parties

2. Ryanair, the purchaser, is the ultimate holding company of the Ryanair group.

Ryanair is an Irish based publicly owned company whose primary activity is the

provision of scheduled point-to-point air passenger transport services. In Ireland,

Ryanair offers flights to 21 European locations from Dublin, and flights from

Cork, Shannon, Kerry, Knock and Derry in Northern Ireland.

3. Buzz is a UK based air passenger transport service provider operated by KLM

UK Limited. Buzz was established by KLM in 1999 to provide a low fare

scheduled air passenger transport service. Its principle activity is the operation of

scheduled point-to-point passenger transport services between British airports

and non-British European destinations. Buzz does not operate any routes into or

out of the State.

Analysis

4. The proposed transaction will not result in a lessening of competition on any air

passenger routes into or out of the State. The parties do not overlap in the supply

of air passenger services between the State and any other destination.

5. The proposed transaction would not result in significant foreclosure of any

indirect routes into or out of the State, or the loss of a significant potential

competitor for point-to-point services. The potential for competitors to operate

indirect routes utilising buzz services to compete against Ryanair is limited and

buzz is unlikely to be a substantial potential competitor in respect to point-to-

point services.

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