ASL Aviation Holdings (Ireland) confirmed its participation in the proposed transaction to unite Safair (South Africa) and Airlink (South Africa), pending approval. ASL will remain a minority shareholder within the merged Airlink group of companies. Brands will continue to operate separately.
The South African Competition Commission forbits the merger between Safair and Airlink SA:
The Commission has prohibited the proposed merger between SA Airlink (Pty) Ltd and Safair Operations
(Pty) Ltd, as the transaction is likely to result in a substantial prevention of competition. The Commission is of the view that the merger is likely to result in the removal of an effective competitor to SA Airlink on the routes it currently operates on. Safair offers competitive prices and has been growing in the market both in terms of its existing routes, as well as recently entering new routes.
Safair is also a potential competitor of SA Airlink in those routes which it has not yet entered and is likely to pose a competitive constraint on SA Airlink bearing in mind its currently competitive pricing on competing and non-competing routes. The Commission found that there are significant price differences between Safair and SA Airlink and that if the merger were to be approved, there is a likelihood of significant price increases.
The Commission further found that the merger is likely to result in coordinated effects through the
exchange of competitively sensitive information between SAA and Safair (and SA Airlink) since SAA has
a shareholding in SA Airlink.
Further, SA Airlink currently operates under agreements with SAA. In the event that the merger were to
be approved, SA Airlink would have the ability to adapt the business strategy of Safair such that Safair is
incorporated into the agreements between SAA and SA Airlink. Further, the Commission also found that
Even if Safair were not to be incorporated into these agreements, since post-merger SAA would have an
indirect economic interest in Safair, this would dampen competition between Safair and SAA, (and
presumably by extension SA Express).
In this regard, the Commission found that the merger would likely result in the enhancement and facilitation of coordinated conduct. The Commission found that no remedies could sufficiently address the competition concerns identified.
In light of the above, the Commission finds that the merger is likely to result in a substantial prevention of competition. For this reason, the Commission prohibits the proposed transaction.
Background
Airlink provides scheduled passenger services on feeder routes to major hubs in South Africa and
destinations across Southern Africa. Airlink also provides belly cargo services and maintenance services.
The airline conducts some of its own ground handling activities.
Safair provides scheduled passenger services to and from major airport hubs in South Africa. Safair also
provides non-scheduled or chartered humanitarian aid and relief services to and from African countries as
well as outside of Africa with a principal focus on remote regions like Antarctica (South Pole).
ASL Aviation Group acquired three B737-400s, serials 28892, 28893, 29270, from GECAS that are now being converted into freighters. ASL reportedly aims to eventually operate 10 freighters in its European network for Amazon.
My messages reflect my personal opinion which may be different than yours. I beleive a forum is made to create a debate so I encourage people to express themselves, the way they want, with the ideas they want. I expect the same understanding in return.
Not about ASL Belgium, but about it Spanish sister: ASL Airlines Spain reduced its three BAe 146-300QT fleet to a single aircraft, serial E3186, following the withdrawal of serials E3151 and E3153. Once the remaining aircraft is retired, the airline will cease operations.
Today last ASL Airlines Spain BAe146-300, registered EC-LMR, made his last flight from LGG to CGN with the callsign TAY955P. The aircraft performed a visual circuit followed by a low pass after take off in LGG to say good bye, and then continued to CGN. This results in the end of ASL Airlines Spain.
My messages reflect my personal opinion which may be different than yours. I beleive a forum is made to create a debate so I encourage people to express themselves, the way they want, with the ideas they want. I expect the same understanding in return.
ASL Airlines Belgium took delivery of one B737-800F, MSN 32610, leased from GECAS. It was previously leased to China Southern. It will be registered OE-IMD.
ASL Airlines Belgium took delivery of one B737-400BCF, MSN 28893, leased from GECAS. It was previously used by Alaska Airlines as a passenger aircraft before being converted to a freighter. It will be registered OE-IBL.