The European Commission has approved IAG's proposed acquisition of Aer Lingus.

However the EU's decision is conditional upon two conditions:

• the release of five daily slot pairs at London-Gatwick airport to facilitate the entry of competing airlines on routes from London to both Dublin and Belfast
• Aer Lingus continuing to carry connecting passengers to use the long-haul flights of competing airlines out of London-Heathrow, London-Gatwick, Manchester, Amsterdam, Shannon and Dublin

The EC cleared the proposal under EU Merger Regulation.

The Commission had raised concerns the merger would have led to insufficient competition on a number of routes, as well as preventing 'Aer Lingus from continuing to provide traffic to the long-haul flights of competing airlines on several routes'. 

However the Commission's received assurances that air passengers will continue to have a choice of airlines at competitive prices.

In a statement, European Commissioner in charge of competition policy, Margrethe Vestager, said: "By obtaining significant concessions from the airlines the Commission has ensured that air passengers will continue to have a choice of airlines at competitive prices after IAG's takeover of Aer Lingus.

The five million passengers travelling each year from Dublin and Belfast to London will be able to choose among several strong carriers. And we are also protecting passengers travelling on connecting flights between Ireland and the rest of the world," she added.

IAG is the parent company of British Airways, Iberia and Vueling.

The EU's approval was the final hurdle to the takeover ahead of an Aer Lingus EGM next week.  

In a statement, Transport Minister Paschal Donohoe said, "I welcome today’s decision by the Commission to approve the acquisition of Aer Lingus by IAG. This decision will now be reviewed in order to confirm that there is no impact on the connectivity commitments agreed with IAG.

"Another condition for acceptance of the offer by the State is the passing of resolutions by Aer Lingus shareholders at an EGM that are required to implement the connectivity commitments agreed with IAG," he added.