BBG: IAG gets EU warning shot over €400m Air Europa deal

BLOOMBERG reports:

IAG SA’s €400 million ($428 million) takeover of Air Europa risks being derailed for a second time, unless the firms fix a list of anticompetitive concerns handed down by European Union regulators.

The European Commission said Friday it fired off a so-called statement of objections warning that the deal could hamper competition on multiple routes within Spain as well as connections with the rest of Europe, the Middle East and the Americas. Domestic routes lacking high-speed train alternatives could be particularly hard hit, the regulator said.

“Every year, millions of passengers travel on those routes for a total annual spending of over €3 billion,” the commission said. “Absent suitable remedies, the removal of Air Europa as an independent airline may have negative effects on competition in these already concentrated markets.”

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