Removal of price control on London-Stansted coaches

OFT notice (about 4 pages) that it has released National Express from an undertaking about prices of coach travel between London and Stansted Airport. The undertaking was given in 2000 when National Express acquired control over the Stansted Express rail service. National Express still controls the rail service.

The undertaking that has been removed capped Stansted coach fares to a level no higher than equivalent fares on National Express' London-Heathrow coach service. National Express argued that this was acting as an effective floor on Heathrow fares, unduly preventing it from competing on the Heathrow route. Nobody responded to the OFT's (low-profile) consultation on the removal of this price control.

The OFT considered alternative price control formulae for London-Stansted but rejected them as they would not act as a proxy form of competition. National Express remains committed to maintain fares and frequency on its London-Stansted coaches if a competitor ceases to provide a coach service on the route.

For further information or advice please contact Franck Latrémolière.

Filed under Merger control, OFT, Public transport.

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