European Commission launched this Wednesday comprehensive investigation regarding the purchasing operation Air Europe by group IberiaIt was notified at the end of last year. after a while preliminary examinationBrussels considers operation suspicious “Reduce competition” It is present in the market of air passenger transport services on long-haul routes as well as various short-haul national routes within and outside Spain.
“IAG and Air Europa are Spain’s leading airlines and the main providers of connectivity within the country, with the rest of Europe and Latin America. “Through our thorough investigation, we want to ensure that the operation does not negatively impact the prices or quality of passenger air transport services,” he said. Margrethe Vestager.
The European Commission’s reservations refer to Spanish national routes, particularly on routes between mainland Spain and the Balearic and Canary Islands, where high-speed rail does not offer an alternative. Rival services also face competition problems on the short-haul route between Madrid and some of the main cities in the European economic area, as well as on routes connecting Madrid to Europe. Israel, Morocco, United Kingdom and SwitzerlandBoth airlines offer direct connections. Finally, some long-distance routes between the Spanish capital and Madrid also cause reluctance. North America and South America Both airlines offer direct connections and only a few competitors can offer non-stop routes.
Elements to be examined
During this new in-depth review, EU experts noted that both airlines’ strong slot portfolios, especially Madrid-Barajas airport, may interfere with the provision of air services by other airlines. The commission will also evaluate the possible effects of the operation on indirect links. Brussels is particularly concerned about long-distance routes to South America, where one or both parties have practical one-stop connections and non-stop connections are limited.
Finally, The analysis will examine the possible impacts of the operation on routes that rely on access to other airlines’ domestic and short-haul networks. For the parties’ own operations that may affect their services to international destinations operated by the parties IAG. The operation was reported to the Commission on 11 December and the launch of this comprehensive investigation does not prejudice the outcome of the operation. The commission has a period of ninety working days. June 7, 2024To decide on the operation.
Iberia: “This is what we expected”
Iberia sources downplayed the seriousness of the European Commission’s announcement to launch an in-depth investigation into the Air Europa acquisition operation. “This is something we’ve been waiting for, this just marks a step forward From Phase I to II of the process. to the stage“Attention is drawn to these sources in the competition procedure.” The Commission draws attention to the problems in the competition procedure certain routes We will offer solutions in our offer ‘treatments’ The buyers’ expectation is that we will deliver this in Phase II as we previously announced.
Concept in competition jargon ‘treatments’ It refers to taking measures to ensure that company concentration does not harm competition. It usually consists of: sale of assets to other competitors. In this case, the sale of operating rights for certain routes may be possible. According to Iberia, the proposed ‘solutions’ that the IAG group will present to European authorities will “meet all competition needs.” “Among other things, we believe that the operation is good for consumers and for Spain. It will strengthen the center of Madrid and will strengthen our country’s connections,” they add.
In addition to this operation, Brussels has four more concentration investigations in the second stage: Orange and MásMóvil, recommended purchase Asiana by Korean Airpurchasing iRobot from Amazon and recommended purchase ITA Airways from Lufthansa.