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5 JULY 2021

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Article from BTNews 5 JULY 2021

EU to scrutinise IAG/Air Europa takeover

An in-depth investigation has been opened into the planned acquisition of Air Europa by International Airlines Group (IAG) over worries that the deal may stifle competition on Spanish domestic and international routes.

The European Union (EU) is concerned that the transaction could “significantly reduce competition” on many city pairs on which both airlines offer direct services.

The EU is also concerned at the feed at Madrid looking into the effect on routes where other airlines rely on Air Europa's domestic and short-haul network for their own operations at Madrid, as well as “a number of other” EU airports.

“Without Air Europa's feeder traffic, some airlines may decide to terminate their services to international destinations also served by IAG, reducing choice for travellers,” a statement said.

The Air Europa deal was made when Willie Walsh was still Chief Executive of IAG.

See BTN 10 August 2020 Air Europa price?

See BTN 1 February Air Europa Sold.

www.aireuropa.com

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OUR READERS' FINEST WORDS (All times and dates are GMT)

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ex BA, Hayes

It would seem that Mr Walsh has left another mess for someone else to sort out. IAG should abandon Air Europa and concentrate on itself, or better still be broken up. BA must have a value even at this time. Likewise Aer Lingus. Iberia is in the Alitalia class.


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