Brussels says merger of Iberia and Air Europa did not meet its requirements.

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4 years ago

The European Commission confirmed Thursday that the acquisition of Air Europa by Iberia still did not solve the competition problems identified by the EU authorities when the two airlines announced the breakup of the agreement they reached more than two years ago.

In a statement, Brussels explained that the talks with both companies and the modifications offered by them to obtain the approval of the Community Executive “did not adequately address” the problems detected.

→ Iberia recovers flights to Maldives and Cali.

“IAG offered remedies, but taking into account the results of the market test, they did not fully address our competition concerns,” said the vice-president of the competition authority, Margrethe Vestager.

Vestager also recalled that the second phase of the investigation concluded that the transaction would have affected competition on both domestic and other long-term routes to and from Spain, even though it had taken into account “the impact of the covid-19 restrictions on the affected markets”.

“Competitive transport markets offer connectivity with a wide choice of affordable flights. This must be maintained for when demand fully recovers and travel picks up again,” the Danish official argued.

→ Air Europa will resume flights to Cordoba (Argentina) starting in February.

On Thursday, Iberia and Air Europa airlines have decided to give each other a month and a half, until the end of January, to study new ways to facilitate the integration of their businesses, after being forced to break the agreement they reached more than two years ago, reported EFE.

At the end of June, the European Commission launched an in-depth investigation into suspicions that the transaction could affect competition on 70 domestic and international routes to and from Spain.

The European Commission’s competition services extended until January 4 the deadline to rule on the transaction, but this date expires with the breakdown of the agreement.