On Tuesday 29 June, the European Commission decided to open an in-depth investigation to assess the proposed acquisition of Air Europa byIAG under the EU Merger Regulation.
The preliminary investigation revealed that IAG and Air Europa were in direct competition on the market for passenger air transport services in Spain (routes connecting Madrid to the USA and Latin America) and on several domestic and short-haul routes, including feeder routes to Madrid used by passengers who continue their journey on long-haul flights to the USA and Latin America.
The Commission is concerned that the proposed transaction would significantly reduce competition on services between 70 city pairs in Spain and to/from Spain, where both airlines offer direct services.
IAG and Air Europa are currently the only airlines operating on some routes.
The Commission is concerned about the effects of the proposed transaction on routes where other airlines rely on Air Europa’s domestic and short-haul network for their own operations at Madrid airport and a number of other EU airports. Without Air Europa’s feeder traffic, some airlines may decide to stop flying to international destinations served by IAG.
Link to the case: https://bit.ly/2UgOVjN (Original version in French by Lionel Changeur)