OFT decision to allow CityJet / VLM merger ?

The Uk's Office of Fair Trading today approved the acquisition of VLM by Air France-KLM. The proposed deal had been stalled for several months pending a decision by Air France-KLM as to how they proposed to overcome the virtual monopoly that they would hold on certain routes in the event of the deal going through. 

The deal maker was the decision by KLM to surrender 8 slots at London City airport to Eastern Airways.

Air France said that the decision by the OFT will allow close cooperation between VLM Airlines and CityJet. Just what form this cooperation will take remains to be seen but AF-KLM have had long enough to ponder the options.