Air France-KLM will wholly-own Dutch carrier Martinair by the end of this year after securing long-awaited clearance for the takeover from the European Commission.

KLM has held a 50% share of Martinair for several years but attempts to acquire the outstanding balance have failed to receive regulatory approval.

But the European Commission, which opened an inquiry into the renewed takeover bid in September, has finally permitted KLM to complete the acquisition.

KLM is acquiring the Martinair shareholding from AP Moller-Maersk Group. The transaction will be effective from 31 December.

“With the European Commission approval, economies of scale and synergies become available,” says KLM chief Peter Hartman. “Plans for the future of Martinair within the group will be developed in the coming period.”