The European Commission has not confirmed it is satisfied with the remedies offered by IAG International Airlines Group for the acquisition of Air Europa through its subsidiary Iberia and may block the deal.
The competition regulator has urged IAG to relinquish up to 58pc of Air Europa’s frequencies in 2023 to other airlines, while IAG offered up to 52pc which was an increase from a previous offer.
The transaction is worth EUR400m and the Commission must announce its decision by August 20, with concerns about competition restrictions for routes within, to, and from Spain.
IAG has stated that merging Spain’s two largest airlines is crucial for developing the Madrid Barajas hub and improving the country’s connectivity.
