EU antitrust suspends investigation into IAG-Air Europa deal

The European Fee has quickly suspended its antitrust inquiry into IAG’s proposed acquisition of Spanish provider Air Europa.

In an replace revealed on the fee’s web site this week, the EU regulator halted its inquiry into the €400-million deal as of 9 February, 2024, after having opened an official ‘in-depth investigation’ simply two weeks earlier on 24 January. 

The fee had been investigating the carriers’ slot portfolio, specifically at Madrid-Barajas airport, and the doubtless results of the merger on Spanish home routes and worldwide routes after a preliminary investigation raised competitors issues.

The EU regulator highlighted issues relating to short-haul routes between Madrid and a few European cities in addition to on routes connecting Madrid to Israel, Morocco, the UK and Switzerland.

Lengthy-haul routes between Madrid and North and South America had been additionally beneath the microscope as each Iberia – one in all IAG’s 5 airways – and Air Europa supply direct connections and, in response to the fee, face little competitors from different carriers.

IAG, which additionally owns British Airways and Aer Lingus, submitted commitments on 23 February, 2024, to handle the EU’s issues, the small print of which haven’t been supplied. 

The fee had been on account of ship its choice on the deal on 7 June, 2024. In its full-year 2023 earnings report launched final week, IAG stated it anticipated a decision to the EU competitors inquiry “in late 2024”.

Journey trade and shopper teams throughout Europe have additionally warned in opposition to elevated airline consolidation, stating proposed mergers may restrict market competitors and result in larger air fares.

The airline group scrapped a earlier deal to amass Air Europa in 2021 after its concessions failed to handle EU competitors issues.