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nternational Airlines Group, otherwise known as IAG, have acquired yet another European airline in a deal reported to be worth €1 billion ($1.12 billion). The owner of British Airways and Iberia has now bought its third Spanish airline, after acquiring Vueling in November 2012.

This means that IAG will now operate a staggering 84% of seats sold domestically in Spain, with the ambitions of the Air Europa transaction to solidify Madrid as an IAG hub along with London Heathrow for British Airways.

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If this isn't referred to the EU competition commissioner I will be shocked. IAG would own Spain's three largest airlines and over 93% of airline capacity in the country, which is unlikely to be allowed.

That is what I found surprising. How could they make a play when the EU should put the anti-monopoly kibosh on such an idea.

I think they will look at it on a European scale. Other EU countries are dominated by 1 airline (or airline group) as well.

On a European scale, this adds (based on 2018 figures) some 12m annual pax, adding to IAG's current 113m. They will remain #3 in Europe (by passenger numbers), behind LH group and Ryanair, and ahead of AF/KL.

If that takeover wasn't allowed, IAG will (rightfully, if you ask me) complain about LH having been allowed crazier stuff.

Don't get me wrong, I'd prefer the airline world being run by smaller, independent airlines instead of cartel-like groups, but the zeitgeist doesn't seem to agree here.

miamiair wrote:That is what I found surprising. How could they make a play when the EU should put the anti-monopoly kibosh on such an idea.

That`s what I was thinking as well, but then is there any alternative if IAG have made a reasonable bid.