The Catalan Competition Authority (ACCO) said the International Airlines Group’s (IAG) possible purchase of Norwegian Air Shuttle would have to be analyzed in depth because it could involve risks for competition at Barcelona’s El Prat Airport.
IAG revealed April 12 it had acquired a 4.61% stake in the low-cost, long-haul carrier, a step it said could eventually lead to an offer for a full takeover.
“The Catalan Competition Authority considers that this operation could reduce competition and have negative effects on the welfare of the citizens of Catalonia since both companies are very significant at Barcelona-El Prat Airport, the watchdog said. It noted IAG operates to 120 destinations through all its airlines, including Iberia, Vueling and Level, as well as British Airways, while Norwegian operates to 23 destinations.
Its preliminary analysis of the situation reveals overlaps between Norwegian and the IAG group airlines on 17 routes and the group would become the sole operator to four destinations, including two transatlantic ones, ACCO said.
If a takeover operation went ahead with no concessions, four destinations—Dubrovnik, Gothenburg, Los Angeles and Oakland—would be served by just one operator, down from two.
In the case of seven destinations, competition would reduce from three to two operators—Copenhagen, Dusseldorf, Edinburgh, Gran Canaria, Helsinki, Reykjavík and Oslo.
Stockholm, Hamburg, Tel Aviv and Tenerife would see their choices reduced from four to three competitors. London would be served by four operators, down from five, and Warsaw five down from six.