MADRID (EFE).- Iberia is finalizing the Air Europa route transfer package that it must submit to Brussels next Monday to overcome the problems of concentrating the offer that will allow it to obtain the approval of the Community authorities in the purchase of the Globalia airline.
However, it is possible that the European Commission, in its analysis of the process – which has until July 15 to rule – could trigger a “stop the clock” if it needs additional information.
The Madrid-based group announced airlines that might be interested in taking those routes it must ditch: Avianca, Binter, Aerojet, Ryanair, Volotea and World2fly.
What it did not detail were the routes and frequencies it could transfer to other airlines (“therapies” in societal terminology) but it indicated that it was prepared to transfer up to 40% of those operated by Air Europa in 2023 and not leave even a single link. Without competitors.
Four years after the first agreement
It has now been four and a half years since Iberia – which has been integrated into the IAG group alongside British Airways, Vueling, Aer Lingus and LEAF – first concluded an agreement with the Hidalgo family, owners of Globalia and Air Europe, for which the former will pay 1,000 million dollar. Euros in cash to control the latter. After the pandemic, the final number dropped to 500 million.
This week, the European Commission’s vice-president responsible for competition, Margrethe Vestager, held a high-level meeting with the CEOs of IAG and Iberia, Luis Gallego and Marco Sansavini, respectively, although neither Brussels nor the airline group provided details.
In the last “objections document” published on this purchase, at the end of last April, the community authorities reflected the problems they observed in the process, especially in a series of ways in which they believe there may be a rise in prices or a worse quality of supply.
The Competition Services of the Community Executive are concerned about the impact of the merger on long-distance routes between Madrid and North and South America, as well as on communications with the two Spanish archipelagos and some European connections.
The European authorities were officially notified of this second purchase attempt on 11 December 2023. IAG now intends to acquire the 80% of the share capital of Air Europe that it does not yet control for €400 million, in addition to the €100 million that the 20% has already disbursed. Remaining in August 2022.
Transfers to airlines Avianca, Binter, Iberojet, Ryanair, Volotea and World to Fly
Iberia has now become more ambitious in its “remedies” package and has offered the Commission to give Avianca, Binter, Iberojet, Ryanair, Volotea and World to Fly a portion of its routes and those of Air Europe to avoid competition problems.
Unlike the 2021 proposal, when a closed package was sent, this time Iberia offered an open list so that Brussels could identify options that best fit the principle of protecting competition.
The Spanish-British group seeks to reach a “balanced” agreement that adequately protects competition and, at the same time, positions Madrid-Barajas as a major hub (air traffic connection center) in southern Europe, to enhance connectivity and improve routes to Asia. .
This would also allow it to compete and be closer to large European hubs, such as Paris Charles de Gaulle, Amsterdam Schiphol (both where Air France-KLM is based) or Frankfurt, the headquarters of the group headed by Lufthansa.
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