Thomas Cook looking for £500 million from EC

Nine years ago, Airtours and First Choice applied for permission to merge but were rejected by the European Commission due to a veto vote from Brussels. Today Thomas Cook is getting ready to seek damages from the EC to the amount of £500 million over that decision.

Last year Airtours, under the name of MyTravel, completed a merger with Thomas Cook but First Choice was bought up by Thomas Cook’s rival competitor, TUI Travel.

In 1999, the EC declined permission for Airtours and First Choice to merge based on the grounds that such a merger would distort the travel market in the UK. The ruling was overturned under an appeal submitted by Airtours in 2002 and now a claim for damages has been submitted to the court.

The damage claim was submitted in 2003 and has been slow to get through the legal system in Europe. The delay may actually be good news for those seeking damages as in the interim, a similar case has gone before them and found success.

The EC prohibited a merger between two electrical enterprises in France, who successfully brought damages against the Commission for doing so.

While it is good news for Airtours, the EC is appealing the successful damage claim and the overall outcome is uncertain.