IAG offers 52% of Air Europa’s routes to meet EU competition requirements

International Airlines Group (IAG) has proposed to cede 52% of Air Europa’s routes to competitors in a bid to secure approval from the European Commission for its takeover of the airline.

This offer, submitted on June 10, 2024, is an increase from the previously proposed 40% and aims to address concerns raised by the Directorate General for Competition. The European Commission had objected to the takeover due to potential dominance on routes between the Iberian Peninsula and the islands, various European countries, and many flights from Madrid to Latin America.

The routes in question include 58 problematic ones identified by Brussels. IAG’s latest proposal aims to ensure competition on all these routes, particularly where Iberia and Air Europa’s combined operations would hold significant market shares. For instance, they would control 64% of intercontinental flights at Madrid-Barajas and dominate connections to several Latin American countries.

Iberia sources assert that the new offer ensures multiple competitors on all routes, providing various options for travellers without reducing overall capacity.