On 1 August 2024 International Airlines Group (IAG), owner of among others British Airways, Iberia, Vueling and Aer Lingus, renounced its takeover bid for Spanish airline Air Europa. The announcement followed indications that the European Commission was likely to block the takeover under the EU Merger Regulation because of concerns the deal would unduly restrict effective competition for passenger air transport services within the EU’s Single Market and could lead to higher prices for consumers.

Why it’s important

The Commission had particular concerns over the threat to competition on routes within Spain, to and from other European countries and the Middle East, and on a number of long-haul routes connecting Spain with North and South America. The Commission was concerned consumers could face increased prices and/or decreased quality of services after the takeover.

For consumers it means

-    Lower airfares
-    More choice of routes to fly
-    Better connectivity of routes
-    Better quality services.

What BEUC did

Working in close cooperation with its Spanish members CECU (Federación de Consumidores y Usuarios) and OCU (Organización de consumidores y usuarios), BEUC formally intervened in the Commission’s investigation to express its view that the merger should be cleared only with remedies that effectively counteracted all the competition harms that could result for consumers in terms of higher prices, reduced choice and connectivity and poorer quality service. CECU and OCU issued a joint statement highlighting their concerns about the planned takeover.