CMA Investigation Launched into Aer Lingus and CityJet Agreement

The UK Competition & Markets Authority is investigating the long-term wet lease arrangement between Aer Lingus and CityJet and could launch a merger inquiry.

An initial enforcement order under the UK’s Enterprise Act 2002 has been served on Aer Lingus, its parent company International Airlines Group (IAG), and CityJet. The CMA says it has “reasonable grounds” for suspecting that arrangements are in progress that would result in the two firms’ assets “ceasing to be distinct”.

The CMA’s order does not prohibit the airlines from operating under the wet lease agreement during the course of the investigation.