Regulatory Approval

[TravelDude]

Ok, so when UA was plannig to merge with US it required American regulatory approval. Now, today KLM and Air France were approved by EU regulators to merge. But, it was stated they still need American regulatory approval. Why do European companies need American approval to merge?

 

[trollydolly]

Because both KLM and Air France fly to the US.

 

[Boomer]

The slots were allocated to each of the carriers, with the merger-they could be required to divest.

Under NAFTA, the EU was able to review the Boeing-McDonnel Douglas deal on the grounds that the merger could be anti-competitive due to the concentration of market share for civilian aircraft and military contracts.

I would guess that the US Government would have the same rights.

Interestingly, what or who would review any proposed merger between a US Flag carrier and a European one? What are the potential ramifications if either the US Govt. or the EU nixed such a merger after allowing AirFrance-KLM?