EU watchdog raises concerns over Aer Lingus-IAG deal

The deal between Aer Lingus and International Consolidate Airlines Group (IAG) could be delayed by the European Union Commission’s competition law directorate.

At a meeting in Brussels, EU officials have raised competition concerns over Heathrow landing rights and transatlantic routes with the two companies, which have agreed to a €1.4bn takeover.

The EU merger watchdog is understood to have questioned the two groups over whether an IAG takeover of Aer Lingus would lead to a lessening in competition in the market for valuable landing and take-off slots at London’s Heathrow Airport.

The Irish carrier agreed a deal with the Irish government, whereby the latter would sell its 25.1% stake in the airline, while the former would retain ownership of its slots and would continue to used them to serve routes between the Republic and Heathrow until 2022.

According to the Irish Times, the concerns raised by the EU commission mean IAG will have to propose how it intends to tackle the concerns raised by the directorate over the next few days.

Should the watchdog extend their phase one investigation into the deal as some have suggested, IAG's takeover of Aer Lingus could suffer further delays.