European Commission worried over IAG’s Air Europa acquisition

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The European Commission has expressed concerns about the proposed acquisition of Air Europa by International Consolidated Airlines Group (IAG), as it could lead to a reduction in competition in the Spanish passenger air transport services market. 

The acquisition of a company could impact domestic and short-haul routes that connect Spain with Europe and the Middle East. This may result in higher prices or reduced service quality. Furthermore, it could eliminate competition on long-haul routes connecting Spain with North and South America, which may also lead to increased prices or decreased service quality.

The Commission has issued a Statement of Objections on January 24, 2024, initiating an in-depth investigation into the potential impact of the acquisition on passenger air transport services. The investigation will consider various stakeholders’ perspectives, including competing airlines, airports, and consumer groups. 

IAG has the opportunity to respond to the Commission’s objections, review the case file, and request an oral hearing. The company can also propose remedies to address the Commission’s concerns until the remedy deadline of June 10, 2024. 

IAG, a multinational airline holding company based in Spain, owns several major carriers such as Iberia, Vueling Airlines, British Airways, and Aer Lingus. Air Europa, based in Spain, is part of the SkyTeam alliance and operates as the airline division of Globalia, a Spanish tourism group. 

The Commission’s final decision on the acquisition is expected by July 15, 2024. While most mergers are typically cleared after a routine review, those raising competition concerns undergo in-depth scrutiny to ensure they do not impede effective competition in the European Economic Area.

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