Regional Round-Up
Europe questions foreign investment in EU airlines
May 1st 2014
The European Commission (EC) will investigate foreign airline ownership in European carriers, including Korean Air’s (KAL) 44% holding in Czech Airlines, Chinese investors’ 35% equity in Cargolux and Etihad Airways’ part purchases of airberlin, swiss carrier Darwin airline, and the Abu Dhabi’s airline’s planned investment in Italy’s Alitalia. Read More »
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Last year, Singapore Airlines sold the 49% of Virgin Atlantic that it owned to Delta Airlines, which is headquartered in Atlanta in the U.S. Leading European carrier, Lufthansa and its airline supporters are unhappy about the trend and allege some of the deals made do not meet EU regulations. EU law requires European citizens or governments to own at least 50% of an EU airline and they also must effectively control the airline. The EC has asked the relevant member states to explain how the investments they cleared complied with EU rules on ownership and control. China’s Henan Civil Aviation Development and Investment Company, based in a province west of Shanghai, has agreed to pay US$231 million for 35% of the Luxembourg-based cargo carrier. The deal has yet to receive government clearance.
