Brussels, 2 August 2024
Executive Vice-President Margrethe Vestager, in charge of competition policy, said:
“IAG and Air Europa are leading airlines in Spain. From their hubs in Madrid, they are key providers of connectivity within Spain and between Spain, the rest of Europe and the Americas.
We looked closely at the impact of the transaction on competition, especially on those routes in which alternative flights are limited. Our in-depth analysis indicated that the merger would have negatively affected competition on a large number of domestic, short-haul and long-routes within, to and from Spain on which the two airlines compete closely.
We were concerned that the transaction may have led to adverse effects for passengers – business customers and consumers alike – in terms of increased prices or decreased quality of services. IAG offered remedies, but taking into account the results of the market test, the remedies submitted did not fully address our competition concerns.
This is the second time that the Commission was asked to assess the acquisition of Air Europa by IAG under EU merger control rules, after the first attempt failed in 2021 due to the Commission’s competition concerns. Air Europa is in a stronger position today than it was in 2021 so the challenge of identifying adequate remedies was even greater than in 2021.”
Background
More information will be available on the Commission’s competition website, in the Commission’s public case register under the case number M.11109.