IAG cuts value of loan to Spain’s Air Europa by 41%

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Spain’s Air Europa still “extremely delicate” - report

Lengthy probe awaits IAG’s planned Air Europa acquisition

IAG International Airlines Group’s second attempt to buy Air Europa (UX, Palma de Mallorca) could be subjected to a lengthy investigation by the European Commission and, ultimately, possible failure due to competition concerns, four unnamed sources close to the matter told the Financial Times this week.

“This is the second time this merger has been attempted, and it doesn’t look good,” one of the insiders said. “We didn’t like the first one. It’s going to be worse this time around.”

The sources said that the deal - which, according to the newspaper, has yet to be formally filed in Brussels - could be cleared with concessions, but the chances are slim. The European Commission will need to be convinced that ticket prices would not be higher following an agreement than without one.

As part of the assessment, regulators will look at the impact of the deal “route by route,” the sources said. It has been suggested that completion could take another year to clear regulatory hurdles, but IAG could still come up with enough...

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