Regulator flags concerns over possible IAG-Norwegian tie-up

Any future merger of Norwegian with IAG could lead to a reduction in competition at Barcelona's El Prat airport and harm the interests of Catalan citizens, the Spanish region's competition regulator has warned. The Autoritat Catalana de la Competencia (ACCO) says that a preliminary analysis shows that in the event of IAG acquiring control of the Oslo-based carrier there would be a "significant reduction" in competition due to the overlap in the two companies' route networks. Unless this was offset by "significant efficiency gains", that prices could rise and the quality of service experienced by passengers could be negatively impacted, the regulator warns. IAG disclosed earlier this month that it had acquired a 4.61% stake in Norwegian and could use this is as a springboard to make a full takeover bid for the Scandinavian carrier. ACCO says that Norwegian and IAG-owned airlines overlap on 17 routes operated from the Spanish airport and that any tie-up between the two carriers would leave the Spanish-headquartered airline group with a "monopoly" on four routes to Dubrovnik, Gothenburg, Los Angeles and Oakland.<br/>