IAG’s planned takeover of Air Europa is facing a longer competition assessment period as the European Commission reviews additional commitments. The Commission has extended the deadline by 10 working days after concerns were raised about potential competition restrictions on routes to and from Spain.
In April, IAG was notified that the acquisition could limit competition, especially on certain Spanish domestic routes and international routes. To address these concerns, the Commission requested further remedies by June 10. However, on June 7, the deadline was extended as more commitments were submitted.
Initial commitments made by IAG in February were deemed insufficient to alleviate the Commission’s worries about the impact of the merger. The Commission highlighted concerns about reduced competition on Spanish domestic routes and routes to Europe, the Middle East, and the Americas, particularly those without high-speed rail alternatives.
The extended assessment period indicates that the Commission is taking a closer look at the potential consequences of the merger on competition in the aviation industry. This additional scrutiny underscores the importance of ensuring fair competition and consumer choice in the market.
As the merger between IAG and Air Europa undergoes further evaluation, stakeholders will be eagerly awaiting the Commission’s final decision on the deal. The outcome of this assessment will not only impact the two airlines involved but also the broader aviation sector in Europe and beyond.
Overall, the extended competition assessment highlights the complexities and considerations involved in large-scale mergers and acquisitions in the airline industry. It serves as a reminder of the regulatory scrutiny and oversight necessary to maintain a competitive and fair marketplace for all players involved.