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The European Commission (EC) authorized Wednesday the merger between Air France and KLM Royal Dutch Airlines after the companies resolved concerns about reduced competition, mainly between Paris and Amsterdam and between Europe and the United States.
The review of the largest merger in the European airline industry has led the European Union (EC) executive to seek the surrender of 94 single take-off and landing slots per day.
"This will enable rival airlines to start a service where competition would have been eliminated or significantly reduced therefore preserving choice of carriers and competitive prices for European travelers," the EC said in a statement.
The EC also obtained assurances from the Dutch and the French governments that they would give traffic rights to other carriers wishing to stop over in Amsterdam or Paris en route to the United States or other non-EU destinations.
"The outcome of this case shows that the long-awaited consolidation of the European airline sector can be done in full respect of competition rules," said EU Competition Commissioner Mario Monti.
Air France announced last December that it would acquire control of KLM. The deal, which also needs the approval from the US Department of Justice, will create the largest airline group in Europe.
(Xinhua News Agency February 13, 2004)
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