British Airways owner International Consolidated Airlines Group's (LSE:IAG) acquisition of Air Europa is likely to face continued objections from the European Union regulator, a report suggested.
The Anglo-Iberian group suggested potential remedies to initial antitrust concerns raised by the European Commission as part of the phase-two investigation.
But the EU's antitrust body has not asked other airlines and customers what they think of the remedies, according to a report from Reuters on Wednesday afternoon.
The sources who leaked the news suggested that this indicated the remedies are not sufficient to address regulatory concerns.
The EC's statement of objections is expected to be made to the company towards the end of the month, the sources said, where regulators will call for measures needed to avoid the deal being terminated.