HomeAir LineIberia-Air Europa: the new factor that worries Brussels

Iberia-Air Europa: the new factor that worries Brussels

The European Commission is advancing its analysis of the Iberia-Air Europa operation with a new open front. Brussels has focused on the business sense of integration, to check whether the IAG company’s move seeks to get one of its major competitors in Barajas out of the way (Iberia-Air Europa: IAG’s plan to convince Brussels) .

Legal sources tell Cinco Días that “in this test before the regulator it is key to refine as much as possible. Falling short of concessions to competition can be fixed with additional concessions, while going overboard could be seen as a risk to free competition.”

Iberia has been pointing out for many months that the operation would only bring benefits due to the synergies between both companies. With a “very complete and well-armed” offer, the company sees great potential to make Madrid-Barajas a great hub that allows it to compete head-to-head with Heathrow, Paris-CDG, Frankfurt or Schiphol, among others.

As is already known, IAG has committed to divest at least 40% of Air Europa flights in 2023. Among the candidates to absorb them are big names such as Ryanair, Volotea, Binter, Avianca, World2Fly and Iberojet, something which, for the leader of Iberia, Marco Sansavini, is “proof of the solidity and robustness of the package that we have presented” (Iberia, open to giving up more routes to buy Air Europa).

Regarding those who warn of a competition problem, the company insists that the market shares of the continent’s two largest airline groups, Air France-KLM and Lufthansa, would not be exceeded.

As published PreferentialIn the long haul, Iberia-Air Europa owns 64% in Madrid, compared to 74% of KLM in Amsterdam, 64% of Lufthansa in Frankfurt and 61% of Air France in Paris. In addition, Lufthansa accounts for 70% of long-haul flights in Munich, while Swiss controls 72% in Zurich.

Source: Preferente



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