Regulators across Europe have moved to pause their formal assessment of Iberia’s acquisition of Air Europa, a step described by insiders as a routine extension that buys time for additional data collection without shortening the official review period. Brussels employed a similar pause last summer during the Orange-MásMóvil merger, a deal that eventually cleared, demonstrating how this mechanism can smooth the evaluation of intricate consolidation moves.
In the weeks leading up to this pause, Iberia had already forwarded its proposed remedies to Brussels. The plan calls for divesting certain routes to other carriers to address concerns and help speed up authorization. The Iberia-led consortium, guided by executive chairman Luis Gallego, is pursuing European Commission approval with clear assurances and is prepared to promptly supply any data regulators request, aiming to reduce friction in the process.
More than three years after signaling the intention to buy Air Europa, Iberia completed the transaction on February 23, 2023, with ownership remaining with the Hidalgo family, at a total valuation of 500 million euros. Iberia argues that the merger will yield substantial benefits for travelers, strengthen Madrid-Barajas, and boost the national economy by creating a more robust air-transport network and improving hub efficiency.
The IAG holding company has consistently asserted that integrating Air Europa is essential for Madrid to stand on equal footing with Europe’s leading hubs, including Amsterdam, Frankfurt, London Heathrow, and Paris Charles de Gaulle. Pre-pandemic data placed Madrid among the lower ranks of Europe’s top twenty airports for destinations served. At the same time, the combined market share of IAG and Air Europa was estimated to be around 39%, below the levels enjoyed by the largest flag carriers at those major hubs, a gap that stood out before the health crisis disrupted global travel. (Source: European Commission briefings, 2023) (EU regulator notes, 2023).