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British Airways owner International Airlines Group’s second attempt to buy Spanish carrier Air Europa is expected to face a lengthy probe in Brussels and may even be blocked amid concern it will lead to higher ticket prices, according to four people familiar with the matter. IAG, which also owns Spanish flagship carrier Iberia, struck a deal in February to buy the 80% of Air Europa it does not already own for about E400m. The carrier is betting the tie-up will increase its access to the fast-growing Latin American market and help turn Madrid into another European hub. The proposed deal had yet to be formally filed for approval in Brussels, but regulators were readying another lengthy probe, the people said. “This is the second time this merger has been attempted, and it doesn’t look good,” one of the people said. “We didn’t like the first one. It’s going to be worse this time around.” In 2021, IAG ditched a first attempt to acquire Air Europa because of regulatory concerns. IAG is the biggest airline operator in Spain while Air Europa is the third largest player. The former initially agreed to pay €1bn for Air Europa in a deal that was struck in late 2019, before the pandemic wreaked havoc across the airline industry. As part of their assessment, regulators will look at the effect of the deal route by route. Authorities in Brussels were concerned at the lack of competition on specific routes, the people said. However, IAG could still come up with sufficient concessions and evidence that competitors could enter crucial routes that would be enough to secure EU approval for the deal, they added.<br/>

SriLankan Airlines has rebutted claims financial issues have forced it to ground aircraft, calling such assertations "misleading." The airline says a worldwide shortage of engines for narrowbody Airbus aircraft and long wait times for repairs are why they have so many planes parked on the ground. Two months ago, ch-aviation reported that three narrowbody Airbus were grounded due to CFM International engine supply issues. Those aircraft remain out-of-service and Colombo-based media are now reporting that a further two are also not flying. The Daily Mirror cites an unnamed source saying the groundings were due to a lack of funds preventing ongoing maintenance of the engines. However, SriLankan Airlines says this is incorrect. "The aircraft are on ground owing to a global shortage and not because of a lack of finances as incorrectly stated in some news reports," reads a statement. "The aircraft, belonging to the Airbus A320N family, are currently awaiting engines after shop visits as the global industry faces a shortage of engines and long lead times for engine repairs for this type of aircraft as a result of a technical reliability issue. SriLankan Airlines is currently working with its suppliers to work out a solution and the global supply of engines is also expected to improve in the months ahead."<br/>