(Adds background, context, IAG response)
Nov 22 (Reuters) - Britain's competition regulator is
examining whether British Airways owner IAG's planned
500 million euro ($563.2 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
euros 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.
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
Jan. 19 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.
($1 = 0.8878 euros)
(Reporting by Yadarisa Shabong in Bengaluru
Editing by David Goodman)