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”The International Airlines Group [IAG, the result of the merger between British Airways and Iberia (Mario)] faces a lengthy competition investigation into its contentious takeover of BMI British Midland after being told by the European Commission that its proposed deal concessions [in particular the vacation of slots ar Heathrow Airport (Mario)] are likely to be rejected.” [FT, 13-03-2012].
Using the economics concepts and the competition policy legislation discussed in the first part of the course, answer the following questions.
1. What are the key characteristics of the market that the European Commission, EC, is likely to take into consideration?
2. What are the economic factors that the EC is likely to consider when assessing the potention outcome of the deal
3.On what economic grounds can IAG defend its bid?
REQUIREMENT:
1.diagrams (if any)need to be correctly drawn and labelled.
2.Statements need to be motivated/explained
3.at least 600 words, no more than 800 words
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