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EU Regulators Extend Deadline for IAG to Offer Remedies on Air Europa Deal

BRUSSELS, June 10 (Reuters) - EU antitrust regulators have given British Airways-owner IAG more time to offer fresh remedies to ease their concerns about its bid for full control of Spain's Air Europa.

IAG, which also owns Spanish carrier Iberia, had faced a Monday deadline to offer concessions but the deadline has now been extended to June 24 and the European Commission will make its decision by July 29, a spokesperson for the Commission said on Monday.

"On 7 June 2024, the Commission decided to extend the phase II procedure in this case by a total of 10 working days," the spokesperson said.

"Accordingly, the deadline for the parties to submit remedies in this case is now 24 June 2024, while the deadline for the Commission to take a decision is now 29 July 2024."

IAG had in February proposed remedies which the EU competition enforcer had deemed insufficient to address worries about reduced competition in Spanish domestic routes and short-haul and long-haul routes as a result of the deal.

The carrier subsequently sought to allay regulators last month saying it was in talks with Avianca, Binter, Iberojet, Ryanair, Volotea, and World2Fly to cede long-haul and short-haul routes to its rivals.

It is also willing to give up more than 40% of Air Europa's 2023 flights to other airlines to boost competition.

IAG is paying 400 million euros ($430 million) to Spanish tourism company Globalia for the 80% of Air Europa it does not own to improve its Latin American market share, expand into Asia and allow its Madrid hub to compete with other major airports in Europe.

($1 = 0.9307 euros)

Reporting by Foo Yun Chee; Editing by Susan Fenton

Source: Reuters

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