Europe's competition watchdog has today blocked a merger between Greece's biggest carriers, Olympic Air and Aegean Airlines, saying it would have created a quasi-monopoly.
'The merger between Aegean and Olympic would have led to a quasi-monopoly in Greece and thus to higher prices and lower quality of service for Greeks and tourists travelling between Athens and the islands,' said European competition commissioner Joaquin Almunia.
Europe's competition watchdog rarely uses its veto on mergers: the last time it blocked one was in 2007, when it barred Ryanair from taking over Aer Lingus.
Olympic Air and Aegean Airlines announced in February 2010 plans to merge into a single listed company that would take the name Olympic Air and become a 'national champion' in the airline business.
