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BRUSSELS, June 29 (Reuters) - The European Commission said
on Tuesday it had opened an in-depth investigation into
International Airlines Group's planned purchase of
Spain's Air Europa.
The Commission, which oversees EU antitrust policy, said it
had concerns that the proposed transaction would reduce
competition for Spanish domestic routes and on international
routes to and from Spain.
The EU executive said it had 90 working days until Nov. 5 to
take a decision and that the airlines had decided not to submit
potential remedies during the initial investigation.
"IAG, which flies with Iberia and Vueling among others, and
Air Europa are leading airlines in Spain. They are also key
providers of connectivity between Spain, the rest of Europe and
Latin America," Commission executive vice president Margrethe
Vestager said in a statement.
"We will carefully assess whether the proposed transaction
would negatively affect competition on domestic, short-haul and
long-haul routes to and from Spain, possibly leading to higher
prices and reduced quality for travellers," she continued.
She added that, although the financial situation of many
airlines was still fragile, it was important that the recovery
of the sector took place in a competitive environment,
preserving choice for customers.
IAG, which owns British Airways and Iberia, agreed to buy
Air Europa for 500 million euros ($594.75 million) in January,
after the pandemic cuts the initial price in half and IAG struck
a deal to defer payments for six years.
($1 = 0.8407 euros)
(Reporting by Philip Blenkinsop
Editing by Marguerita Choy)
