The European Commission has temporarily suspended its antitrust inquiry into IAG’s proposed acquisition of Spanish carrier Air Europa.
In an update published on the commission’s website 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’ just two weeks earlier on 24 January.
The commission had been investigating the carriers’ slot portfolio, in particular at Madrid-Barajas airport, and the likely effects of the merger on Spanish domestic routes and international routes after a preliminary investigation raised competition concerns.
The EU regulator highlighted concerns regarding short-haul routes between Madrid and some European cities as well as on routes connecting Madrid to Israel, Morocco, the UK and Switzerland.
Long-haul routes between Madrid and North and South America were also under the microscope as both Iberia – one of IAG's five airlines – and Air Europa offer direct connections and, according to the commission, face little competition from other carriers.
IAG, which also owns British Airways and Aer Lingus, submitted commitments on 23 February, 2024, to address the EU’s concerns, the details of which have not been provided.
The commission had been due to deliver its decision on the deal on 7 June, 2024. In its full-year 2023 earnings report released last week, IAG said it expected a resolution to the EU competition inquiry “in late 2024”.
Travel industry and consumer groups across Europe have also warned against increased airline consolidation, stating proposed mergers could limit market competition and lead to higher air fares.
The airline group scrapped a previous deal to acquire Air Europa in 2021 after its concessions failed to address EU competition concerns.