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

CourtCompetition and Consumer Protection Commission (Ire)
PartiesBuzz,Ryanair
Decision Date24 March 2003
Decision NumberM/03/005
StatusCleared (Phase 1)
Date24 March 2003
Determination of the Competition Authority
Determination No. M/03/005 of the Competition Authority, dated 24 March
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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