Murdo Fraser MSP has written to Commissioner Joaquín Almunia, the Vice-President of the European Commission and Commissioner responsible for competition; and to Philip Collins, Chairman of the Office of Fair Trading, to raise concerns at the potential implications for Scotland of IAG/British Airways (BA) takeover of BMI.
Scottish Conservative MSP, and Convenor of the Economy, Energy and Enterprise Committee, Murdo Fraser MSP said:
“I am concerned that if this deal goes through then it will create a monopoly in Scotland, which is bad news for our airports, our airport staff, Scottish business and travellers.
“Scotland’s connectivity is vital for business and any takeover must fully take into account any impact on Scotland’s airport staff, who carry out a tremendous job in keeping Scotland moving and open for business.”
In his letters to the Commissioner and to the Chairman of the OFT, Murdo Fraser outlined his concerns regarding the takeover:
“My principal concern is the implication to Scotland of the proposed takeover, in particular, the potential impact on competition in the airline sector in the UK and also on whether BA will make changes to the frequency of flights between Scotland and the UK or to overall capacity. If the deal is completed, IAG's share of take-off and landing slots at Heathrow will rise from 45% to 53%, consolidating its position as the airport's most powerful carrier.
“This could lead to a monopoly situation on routes such as Aberdeen and Edinburgh to Heathrow, potentially leading to higher prices. I am also aware that the loss of BMI's ticketing link to the Star Alliance could have implications for the attraction of visitors to Scotland if all BMI's links move from the Star Alliance terminal to BA's Terminal Five at Heathrow. Finally, the sale of BMI more generally will have implications for BMI Regional and the near 300 staff based in the north-east of Scotland.”