IAG-Air Europa Deal Stalled Again by Improved Performance
EU Regulators Request Additional Remedies
Air Europa's Improved Performance Adds Obstacle to Acquisition
WEB Air Europa's improved performance since 2021 has made it harder for the European Union (EU) to identify sufficient remedies to address concerns about IAG's bid to acquire the Spanish airline. EU antitrust regulators have given IAG more time to offer fresh remedies amidst the ongoing antitrust investigation into the proposed merger.
WEB The strong financial performance of Air Europa has raised doubts about whether the proposed remedies, such as slot divestments or code-sharing agreements, would be enough to mitigate the competitive concerns identified by the EU. IAG, the parent company of British Airways, is seeking to acquire Air Europa in order to strengthen its presence in the Spanish market.
WEB Despite the setback, IAG's share price rose on Friday following the release of its strong second-quarter financial results. The company reported a significant increase in revenue and profit, driven by a rebound in travel demand. IAG also announced plans to scrap its dividend to strengthen its financial position amidst the ongoing acquisition process.
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