On Wednesday 24 January, the European Commission announced that it had opened an in-depth investigation into the proposed acquisition of sole control of Air Europa Holding, S.L. (Air Europa) by International Consolidated Airlines Group, S.A. (IAG).
The Commission’s preliminary view is that the merger would be likely to affect competition in the market for passenger air transport on a number of routes within and outside Spain.
The Commission notes that IAG and Air Europa are close competitors of significant size in the market for passenger air transport services on certain routes within, to and from Spain. What’s more, on some of the routes these airlines operate, there are few competitors or no alternative solutions.
“IAG and Air Europa are leading airlines in Spain and key providers of connectivity within the country and between Spain, the rest of Europe and Latin America. With our in-depth investigation, we want to make sure that the transaction does not negatively affect the prices or the quality of passenger air transport services in and out of Spain”, said European Competition Commissioner Margrethe Vestager.
The European Commission has specified that, as part of this in-depth investigation, it will examine the structure of the market, particularly at Madrid-Barajas airport. The Commission also intends to examine the likely effects of the transaction on certain indirect routes, particularly those linked to South America, as well as on routes where access to the domestic and short-haul network of IAG and Air Europa is important for the activities of other airlines.
The European Commission must take a decision by 7 June 2024 at the latest.
Link to the case in the Commission’s register: https://aeur.eu/f/ak2 (Original version in French by Émilie Vanderhulst)