The European Commission announced on Wednesday that it has opened an in-depth investigation into the purchase of Spanish airline Air Europa by International Airlines Group (IAG), parent company of British Airways and Iberia.
The Commission said a preliminary investigation had revealed that the deal could lower competition in the passenger air transport market on several domestic, short-haul and long-haul routes.
It noted that IAG and Air Europa were strong and close competitors in terms of passenger air transport services on routes within and originating from Spain.
In February 2023, IAG confirmed its acquisition of Air Europa for €500 million from Spanish tourism group Globalia. This is in line with IAG’s long-term goal to bolster its connections to Latin America and make Madrid one of the leading European hubs.
The IAG group, which also owns low-cost Spanish airline Vueling and Irish company Aer Lingus, specified at the time that the sale was “subject to regulatory approvals.”
Brussels expressed concern regarding competitive conditions on domestic routes in Spain, particularly between the peninsula and the Balearic and Canary Islands, as well as routes between Madrid and some of the major European cities, along with Israel and Morocco.
The long-haul routes between Madrid, North America, and Latin America are also covered by the investigation.
The Commission will further examine if the increased slots obtained by IAG at the Madrid-Barajas airport could potentially hinder other carriers.
The aviation sector remains one of the hardest hit by the Covid-19 pandemic, which ground global traffic to a halt for months, leading to consolidation plans among European airlines.
