British Airways owner’s Air Europa deal under scrutiny by competition watchdog
The Competition and Markets Authority said it will make a decision by January over whether to launch a formal investigation into the deal.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The takeover of Air Europa by British Airways owner IAG could face a formal investigation by the competition watchdog.
The Competition and Markets Authority (CMA) said it is considering whether the £420 million deal could lead to a substantial reduction of competition in the UK.
IAG first announced plans to buy the Spanish airline in 2019 for 1 billion euros (£840 million) although the price was slashed after the Covid-19 pandemic knocked the entire sector by grounding planes.
We will collaborate with the CMA. The London-Madrid route is highly competitive and is already part of the European Commission (investigation) process
Bosses have already offered concessions to EU antitrust bodies over the deal, although the details have not been made public.
A European Commission investigation was launched in June over concerns that the plans would reduce competition on Spanish domestic routes and international routes to and from the country.
IAG already owns Iberia and the deal would see it buying Air Europa on behalf of IAG, but trade unions and rival carriers have raised concerns.
The CMA said it will make a decision by January 19 on whether to launch a formal investigation.
IAG said: “We will collaborate with the CMA. The London-Madrid route is highly competitive and is already part of the European Commission (investigation) process.”