“The OFT has decided that the merger raises no competition concerns in any market. easyJet and GB Airways overlap in the supply of scheduled passenger flights on certain routes from London Gatwick airport to ‘sun and ski’ destinations popular with leisure travellers, such as the Balearics (Ibiza, Palma and Mahon) and Innsbruck. GB Airways operates these routes in accordance with a franchise agreement with British Airways plc (BA). This fact was significant in ruling out concerns based on the loss of potential competition on totally new routes in the future, because under the franchise agreement BA has a veto over new routes by GB Airways.”

Link: http://www.oft.gov.uk