IAG CEO Gallego cuts short airline meet to race to Brussels

IAG SA Chief Executive Officer Luis Gallego cut short a trip to Dubai for the annual gathering of airline chiefs to race back to Brussels and discuss the group’s bid to acquire Air Europa. 

Gallego left the IATA event, which runs through Tuesday, on Sunday in a last-minute move that saw him cancel commitments for the remaining days of the meeting.

British Airways owner IAG is making a fresh attempt to acquire the 80% of Spanish airline Air Europa that it doesn’t already own following a failed bid in 2021. The current deal is facing scrutiny from European regulators.

“We maintain very frequent conversations with the European Commission with the aim of resolving all their possible objections to the acquisition of Air Europa,” an IAG representative said. “This meeting is part of that constructive dialog process.”

IAG’s tilt at Air Europa is one of several potential attempts at consolidation in the European airline space. Deutsche Lufthansa AG’s bid for a 41% stake in ITA Airways is also under the microscope for its potential impact on competition. 

International Air Transport Association Director General Willie Walsh said on Monday in Dubai that consolidation has a part to play in the industry. 

“The question we have to ask and regulators have to answer is what happens to these smaller, more inefficient airlines if the consolidation doesn’t take place,” Walsh said.

If Air Europa’s purchase is approved, IAG would own three of the four largest airlines in Spain by passenger count.

The IAG representative said the group trusts that the European Commission will ultimately approve the takeover bid, following a comprehensive offer of remedies, and remains highly committed to the process.