The European Commission is not satisfied with the remedies that IAG International Airlines Group has offered for the acquisition of Air Europa (UX, Palma de Mallorca) through its Spanish subsidiary Iberia (IB, Madrid Barajas) and could block the deal, the Financial Times reported.

According to the newspaper, the competition regulator has urged IAG to relinquish up to 58% of the frequencies Air Europa operated in 2023 to other airlines. The holding company recently offered up to 52% of the frequencies (which in itself was a 12% increase on its previous offer) and promised that there would not be a single route operated exclusively by Air Europa and Iberia.

Brussels has until August 20 to announce its decision on the transaction, worth EUR400 million euros (USD434 million). In the past, the Commission said it was worried about potential competition restrictions for routes within, to, and from Spain. It could also use a ‘stop the clock’ mechanism to extend the deadline, delaying the final decision.

IAG declined to comment on the story. However, in the past, the holding has said that merging Spain’s two largest airlines is essential to developing the Madrid Barajas hub and improving the country’s connectivity.

The ch-aviation fleets module shows that Air Europa’s in-house fleet comprises 43 aircraft: eighteen B737-800s, eleven B787-8s, and fourteen B787-9s. Its subsidiary Aeronova also has eight B737-800s. Iberia and subsidiary Iberia Express have 122 in-house aircraft, namely six A319-100s, twenty-five A320-200s, seventeen A320-200Ns, fourteen A321-200s, twelve A321-200NX, eighteen A330-200s, eight A330-300s, and twenty-two A350-900s.