The European Commission has initiated an in-depth investigation to evaluate the proposed acquisition of sole control of Air Europa by International Consolidated Airlines Group (IAG) under the EU Merger Regulation. The Commission is concerned that the transaction may reduce competition in the market for passenger air transport services on various domestic, short-haul, and long-haul routes in and out of Spain. IAG and Air Europa operate extensive networks in Spain, the European Economic Area (EEA), and Latin America.
The preliminary concerns focus on potential reduced competition on Spanish domestic routes, certain short-haul routes within the EEA, and long-haul routes between Madrid and North and South America. The investigation will also assess the impact on slot portfolios at Madrid-Barajas airport, potential effects on indirect connections, and the influence on routes where other airlines rely on access to the parties’ networks.
The Commission has 90 working days, until June 7, 2024, to decide on the matter. The opening of the investigation does not pre-determine the outcome. IAG is a multinational airline holding company, while Air Europa is the airline division of Globalia, a Spanish tourism group.
Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasised the need to ensure that the transaction does not negatively impact prices or the quality of passenger air transport services in and out of Spain.
