Aer Lingus-owner IAG may get warning from EU competition regulator over Air Europa deal

Aer Lingus-parent IAG also owns British Airways, Iberia, and Vueling. Picture: Sam Boal

Aer Lingus and British Airways owner IAG may get a warning from EU competition regulators on its €400m bid to buy out Air Europa if it does not offer remedies in the coming months, a person with direct knowledge of the matter has said. 

The European Commission opened a full-scale investigation into the deal last month, saying it may reduce competition on domestic routes to the Balearic and Canary islands, and on short-haul routes between Madrid and the main cities in Europe, Israel, Morocco, Britain, and Switzerland.