Europe’s antitrust watchdog is scrutinizing the proposed Iberia-Air Europa merger with heightened vigilance. The European Commission believes the flight routes offered by the Madrid-based carrier, controlled by Marco Sansavini, are not enough to guarantee robust competition for travelers and to prevent consumer harm.
The Commission shared its concerns with IAG, the parent group of Iberia, and Air Europa in a recent meeting, a move that signals looming hurdles for the deal. Neither Iberia nor Air Europa has offered formal commentary in response to these initial reservations.
Earlier this summer, Iberia proposed divesting as much as 52 percent of Air Europa’s routes as they stood in 2023. The plan included a list of six competing airlines that could acquire these connections, allowing the European Commission’s Competition department to select the best mix. The six candidate operators were Avianca, Binter, Iberojet, Ryanair, Volotea, and World2Fly.
Supporters of the proposal argue that it does not reduce overall capacity; rather, it guarantees that every route would feature several competing carriers. In Iberia’s view, this ensures travelers have multiple options on every leg of their journey.
The worry for Margrethe Vestager’s team is that a combined Iberia and Air Europa could curb competition on routes where high-speed rail does not offer a viable alternative—such as Madrid to Bilbao or Madrid to Vigo—potentially leaving Iberia with undue influence in these key markets. Similar concerns extend to short-haul routes between Madrid and destinations like Israel, Morocco, the United Kingdom, and Switzerland, where both airlines currently operate direct connections, as well as long-haul itineraries between Madrid and North and South America, which face competition from only a handful of non-direct rivals.
To address this risk, Iberia has, in theory, pledged to divest a substantial portion of Air Europa’s flights. The latest figure proposed moved to 52 percent, as part of an effort to keep competition alive even after a potential merger. The European Commission has set August 20 as a tentative deadline for a final decision on whether the transaction will be allowed, a process that has stretched across nearly five years and could still be paused or extended if new developments arise.