The CMA, the UK’s non-ministerial government authority that investigates mergers and enforces competition and consumer law, has said that baggage, ramp, passenger, airside cargo handling and de-icing services at Aberdeen airport may be affected. This is due to the fact that Menzies and ASIG are close competitors at the airport and, following the merger, only Swissport will remain as a credible bidder for airlines operating there.
At the other airports where both Menzies and ASIG are active, such as Manchester and London Heathrow, lack of competition was not a concern and the CMA found that there would be a number of potential rivals that could compete for future contracts.
In response to the CMA's concerns, Menzies has been asked to offer a remedy to address the issue at Aberdeen airport and has until 22 December 2016 to do so. It is expected that the company’s US$202m acquisition of ASIG Holdings Limited and ASIG Holdings Group from BBA Aviation plc may consequently face delay until 2017.
