MADRID, March 6 (Reuters) - Spanish airline Volotea has
signed a preliminary agreement to buy several of IAG's
routes to help fend off antitrust concerns over the British
Airways parent's 1 billion euro ($1.13 billion) acquisition of
rival carrier Air Europa.
IAG announced the deal in November, betting that Air
Europa's routes between Europe and Latin America and the
Caribbean would help drive future growth. However, the takeover
sparked competition concerns in Spain, where both companies have
a strong presence.
IAG owns Spanish flag-carrier Iberia as well as budget
airlines Iberia Express, Vueling and Ireland's Aer Lingus.
Iberia said on Friday that as a preemptive measure to ease
any European Commission objections to the merger, it had offered
some of its routes to Volotea to bolster competition on the
domestic market.
Iberia added that it had sent a copy of the agreement to the
European Commission, which has to sign off on Volotea's
suitability as a candidate.
When the takeover was proposed Ryanair CEO Michael
O'Leary complained the deal would harm competition and said his
company would push Britain's market watchdog to force IAG to
make divestments.
Volotea, which operates some 319 routes around Europe, did
not specify which routes were included in the agreement, but
said on Friday it plans to open between two and four new hubs in
Spain.
European antitrust authorities still need to approve the
arrangement, it added.
($1 = 0.8831 euros)
(Reporting by Nathan Allen; Editing by Inti Landauro and
Kirsten Donovan)