The IAG International Airlines Group has submitted to the European Commission (EC) a new remedy package in the hopes of obtaining regulatory approval for its subsidiary Iberia's bid to take full control of Air Europa (UX, Palma de Mallorca).
The new package includes improvements “that have come from the constructive dialogue we have been maintaining with the European Commission, with the aim of ensuring that the acquisition of Air Europa is carried out with all guarantees for consumers,” IAG said in a statement to ch-aviation.
This new submission automatically extends the decision deadline by 15 working days. Additionally, the EC has agreed to extend the deadline by ten working days to allow more time to study the remedies; it now has until July 29 to make its final decision on the merger.
While the new adjustments were not made public, in its previous remedy package, IAG said it was willing to offload up to 40% of frequencies that Air Europa operated in 2023 and promised that, if the merger was approved, there would not be a single route operated exclusively by Air Europa and Iberia. Several carriers, including avianca airlines, Binter Canarias, Iberojet (Spain), Ryanair, Volotea, and World2Fly (Spain), have confirmed interest in adopting any routes Air Europa could relinquish as part of its planned acquisition.
The EC is concerned about the impact the merger could have on Spain’s connectivity. This is IAG's second attempt to acquire the Globalia-owned company, after the first proposals offered in 2020 and 2021 were rejected.
Separately, the investment hedge fund Helikon acquired 3.05% of IAG’s shares, representing a transaction worth more than EUR300 million (USD322 million), Forbes reported. By doing so, Helikon has become IAG’s third largest shareholder, behind Qatar Airways Group (which has 25.1%) and Capital Group (5.006%).
