The multinational International Airlines Group (IAG), the parent company of Iberia, Vueling, British Airways and Aer Lingus announced last week it desists from its intent to take over Air Europa. The group cited regulatory demands from the European Union headquarters in Brussels.
In a note on 26 April 2024, the European Commission had expressed concern that the merger may restrict competition in the market for passenger air transport services, in particular for routes within, to and from Spain. “The Commission is concerned that customers may face increased prices and/or decreased quality of services after the transaction,” the press release on the matter bluntly stated.
As reported the European Commission had demanded, among other things, that the aviation group make greater concessions on routes and slots to other competing airlines to avoid the risk of concentration in the market. The merger was expected to control 65% of air traffic between Spain and the Americas, impacting consumers.
As reported, Air Europa has said it will continue with its strategic plan, strengthening air connectivity between Europe and America.
Brussels has approved Lufthansa’s takeover of ITA, formerly Alitalia.
Read more:
European Commission report
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7 Dias
7 Dias
6 August 2024