Preferred digital scoop
Related topics: Air Europa, Globalia, IAG, Iberia
August 1, 2024
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The scoop advanced by the digital is confirmed Preferential: Iberia has just communicated to the European Comission which abandons the purchase operation Air Europe.
“The General Directorate of Competition’s demands for giving the green light to the operation are so high that it no longer makes business sense for Iberia. Therefore, we have decided not to go ahead,” sources from the company explained to the digital Preferente.
The same sources recall that “we had offered to cede up to 52% of the frequencies currently operated by Air Europa, so that none of the routes in which the Commission had identified competition problems would be left without a third operator.”
“Furthermore, in this long negotiation process, we have been responding to all objections. We had presented a list of very solid potential remedy takers. Some have even signed alliances with each other to be able to carry out operations with the greatest guarantees,” they continue.
Iberia says that “all this has been insufficient for the Commission, so the purchase of Air Europa is no longer among our objectives.” “We regret Brussels’ refusal to accept this ambitious proposal which, in our opinion, guaranteed the rights of consumers, would allow our clients to have direct connections with the east of the planet and would encourage competition between the hubs of northern and southern Europe,” they say.
In this regard, they point out that “other consolidation operations in the air sector have just been approved in Europe and we believe that our proposal met all the conditions to have followed the same path.”
Under the terms of the agreement, IAG will pay to Globalia €50 million in break-fee as a result of the termination. IAG continues to hold its 20% minority stake in Air Europa, which it acquired on 16 August 2022.
