The merger of Iberia and Air Europa and the divestitures that the European Commission forces the merged company to make do not only have the protagonists of the purchase in abeyance. There is a whole group of low cost airlines on alert for the outcome of the process. There is a large number of flight rights at stake in markets that are now heavily congested and difficult to penetrate, which can alter the balance in airports like Barcelona.
Ryanair, the first European company by number of passengers, has already shown its cards and aspires to keep its share of the cod. "We are the airline that brings real competitiveness to the Spanish market and we are open to taking slots in Madrid, Barcelona, the Balearic Islands and the Canary Islands", they confirm from the Irish low cost airline. Connectivity to the islands, where there is no alternative by train, stands out as one of the jewels in the crown. In the case of flights between Barcelona and Palma, for example, if the acquisition were to take place without compromise, it would go from the three current operators – Vueling, Ryanair and Air Europa – to only two, and the IAG group would get a share of the market, in terms of flight offer, of 82.95%, compared to the current 55%.
Volotea also guards the weapons. Growing up in Madrid and Barcelona would mean support for their plans to go public. In this regard, the airline states that they are interested in acting as successful bidders on the routes dictated by Brussels. "We do not have a preference for one route or another or for specific destinations and we are ready to cover all the short and medium radius routes that the Commission decides", they say. "We are interested in the slots that can be freed up in Madrid and the connections from the Peninsula to the islands", they add.
Canary Islands Binter aspires to stay with Air Europa routes on the Canary-Peninsula corridor. "Provided the circumstances were right and with the right partners, we could consider accessing the Madrid-Balearic corridor", explains the company.
Whatever happens with the merger could have a knock-on effect on Vueling in Barcelona. In a context of limited capacity, every slot Ryanair can win makes it stronger and consolidates its position as the second airline in El Prat.
"The fact that Ryanair or Volotea can grow on routes such as Barcelona-Madrid or Barcelona-Palma can moderate prices downward" and drag Vueling down, says Pere Suau-Sanchez, researcher at the UOC and Cranfield University.
For its part, IAG supports negotiations with airlines interested in Air Europa routes.
