SINGAPORE's competition watchdog has assessed that ANA Holdings' proposed acquisition of Japanese cargo airline Nippon Cargo Airlines (NCA) will not result in a substantial lessening of competition within any market in Singapore.
The Competition and Consumer Commission of Singapore (CCCS) said on May 24 that it arrived at this conclusion after a six-month review, which also took into account public feedback, reports Singapore's The Straits Times.
The commission launched the review after ANA and NCA submitted an application on December 7, 2023, arguing that the proposed acquisition will not result in a substantial lessening of competition in these markets.
The commission cited three reasons for concluding that the acquisition will not result in a substantial lessening of competition.
Firstly, there are multiple suppliers that are viable alternatives to the two companies. These include competing airlines that operate indirect flights to the relevant markets. Third-party feedback also indicated that ANA and NCA are not the closest competitors to each other.
Secondly, it is possible for competing airlines to consider adding capacity when a competitive opportunity arises. This could be done through the addition of freighter aircraft operations.
Thirdly, coordination between competitors is difficult as the prices charged to customers are not transparent. This is due to specific requirements that involve a direct negotiation process between customers and suppliers.
There are also alternative suppliers available to customers who can easily switch between them. This creates commercial incentives for suppliers to price competitively and dis-incentivizes coordination.
CCCS said that it will make the grounds of its decision available on its public register in due course.
SeaNews Turkey
The Competition and Consumer Commission of Singapore (CCCS) said on May 24 that it arrived at this conclusion after a six-month review, which also took into account public feedback, reports Singapore's The Straits Times.
The commission launched the review after ANA and NCA submitted an application on December 7, 2023, arguing that the proposed acquisition will not result in a substantial lessening of competition in these markets.
The commission cited three reasons for concluding that the acquisition will not result in a substantial lessening of competition.
Firstly, there are multiple suppliers that are viable alternatives to the two companies. These include competing airlines that operate indirect flights to the relevant markets. Third-party feedback also indicated that ANA and NCA are not the closest competitors to each other.
Secondly, it is possible for competing airlines to consider adding capacity when a competitive opportunity arises. This could be done through the addition of freighter aircraft operations.
Thirdly, coordination between competitors is difficult as the prices charged to customers are not transparent. This is due to specific requirements that involve a direct negotiation process between customers and suppliers.
There are also alternative suppliers available to customers who can easily switch between them. This creates commercial incentives for suppliers to price competitively and dis-incentivizes coordination.
CCCS said that it will make the grounds of its decision available on its public register in due course.
SeaNews Turkey