The European Commission takes note of IAG and Globalia’s announcement that they have decided to terminate their proposed agreement according to which IAG intended to acquire sole control over Air Europa.
IAG owns several airlines, including Iberia and Vueling, and is the largest airline in Spain. Air Europa is the third largest airline in Spain. The Commission confirms that the discussions with the companies and the proposed remedy package thus far were not able to adequately address the competition concerns identified by the Commission. The Commission had opened an in-depth investigation into the proposed transaction on 29 June 2021.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said:” IAG and Air Europa are leading airlines in Spain, with their hubs in Madrid from where they operate a network of domestic and international flights. They are key providers of connectivity between Spain, the rest of Europe and Latin America.
The in-depth analysis carried out during the phase II investigation indicated that the merger would have negatively affected competition on some domestic, short-haul and long-routes within, to and from Spain. Our assessment fully took into account the impact of covid restrictions on the markets affected. IAG offered remedies, but taking into account the results of the market test, the remedies submitted did not fully address our competition concerns.
Competitive transport markets offer connectivity with a wide offering of affordable flights. This should be preserved for when demand returns fully and travelling picks up once again.”