Transport

UK watchdog investigates Aer Lingus-owner’s Air Europa deal

Regulator examining whether IAG’s planned purchase of airline would harm UK competition

IAG had announced its plans to buy Air Europa for €1bn in 2019, but the price was cut in half this year after the industry was sent into a tailspin by the pandemic. Photograph: iStock

Mon Nov 22 2021 - 08:55

Britain’s competition regulator is examining whether Aer Lingus and British Airways-owner IAG’s planned €500 million purchase of Spain’s Air Europa would harm competition in the UK, the watchdog said on Monday.

IAG had announced its plans to buy Air Europa for €1 billion in 2019, but the price was cut in half this year after the airline industry was sent into a tailspin by the Covid-19 pandemic.

The British company has already offered concessions to address EU antitrust concerns over the deal, a filing showed last month, though details were not provided.

The European Commission opened an in-depth investigation in June, voicing concerns that the proposed transaction would reduce competition on Spanish domestic routes and on international routes to and from Spain.

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The deal, which involves Iberia buying Air Europa on behalf of IAG, had sparked opposition from the Unite union over jobs and from rival carriers.

The Competition and Markets Authority (CMA) said it has a January 19th deadline for its initial investigation decision.

“We will collaborate with the CMA. The London-Madrid route is highly competitive, and is already part of the European Commission [investigation] process,” IAG said on Monday. – Reuters

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