International airlines group: Brussels sends its list of grievances on Air Europa


(CercleFinance.com) – IAG fell on the stock market this Monday while Brussels sent the air carrier a list of grievances concerning its planned acquisition of the Spanish company Air Europa.

The European Commission fears that the operation will restrict competition in the passenger traffic market, in particular for connections within, to and from Spain.

In this context, the European executive fears that customers will be faced with an increase in prices and/or a drop in the quality of services after the merger.

Particularly at the level of short-haul routes connecting Spain to countries in Europe and the Middle East, IAG and Air Europa could find themselves in a situation of direct competition, explains Brussels.

Problematically, the EU adds, competition on these routes is limited and mainly comes from low-cost carriers, such as Ryanair, which in many cases operate from more distant airports.

The Commission opened an in-depth investigation into the operation at the start of the year, before judging that the concessions proposed by IAG and Air Europa were not sufficient.

This new list could force the two groups to propose new concessions, in order to resolve the problems raised by the Commission.

In the meantime, IAG shares fell by around 0.1% on Monday on the London Stock Exchange.

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