The European Commission has revived its review of IAG’s purchase of Air Europa after the aviation holding company submitted the technical data requested on Friday. Brussels has set July 15 as a provisional date to decide, according to EU sources cited by Europa Press. The decision, however, could be extended by 15 to 20 days if the operation warrants it.
The initial deadline to complete this procedure was June 7, but on March 4 the Commission applied the “stop the clock” mechanism to request additional information from Iberia’s parent company. Now that the documents have been verified on receipt, the Commission has reactivated its investigation.
Iberia sources told Europa Press that this mechanism is commonly used in such processes and serves to gather more information without consuming the normal time frame, which is 90 days.
There is now a chance of further pauses given the operation’s complexity. Nevertheless, Iberia stresses that it has supplied all requested information promptly and will continue to do so if new requests arise.
The airline has presented a comprehensive package of concessions, or remedies, designed to safeguard competition in the market.
They also remind that the deal is essential to strengthen the Madrid hub and bring it on par with northern European hubs, as well as to boost Spain’s connectivity, particularly with Asia.
As a result, it is argued that the Air Europa acquisition would benefit consumers and help spur Spain’s economy and job creation.
When the procedure was delayed, Margrethe Vestager, the vice president of the European Commission and competition chief, explained that her actions were limited to competition issues and had no bearing on other matters.
She also clarified that the decision had no connection to the so-called Koldo case, which is being investigated in Spain for alleged commissions in the purchase of masks by a former advisor to the former tourism minister during the pandemic, and which also involved a former Air Europa advisor.
On January 24, the Commission announced the opening of a thorough investigation into the operation amid worries that it could lessen competition in air passenger transport services on several routes, both domestic and international, for short- and long-haul flights.
One month later, on February 27, the IAG group submitted a set of remedies to address Brussels’ concerns about the Iberia-Air Europa merger.