IAG says Aer Lingus would continue to work with long-haul rivals - source

June 26 (Reuters) - Seeking to win approval for its proposed takeover of Aer Lingus (Other OTC: AELGF - news) , British Airways owner IAG has told EU officials the Irish carrier would maintain commercial deals with its rivals on long-haul flights via London, a source told Reuters.

The European Commission said on Thursday that it had extended the deadline for its decision on whether to approve IAG's 1.3-billion-euro ($1.5 billion) bid for the Irish airline to July 15 after receiving competition concessions, but it did not give any details.

The source, who has knowledge of IAG's submission of proposed concessions, also told Reuters that IAG had not offered to surrender any slots at London's Heathrow Airport currently controlled by IAG or Aer Lingus following the proposed takeover.

IAG said its engagement with the Commission was ongoing and that it would be inappropriate to comment further at this stage.

The European Commission declined to comment.

IAG rival Virgin Atlantic Airways Ltd currently has a cooperation agreement with Aer Lingus, whereby it can sell long-haul tickets including Aer Lingus connecting flights. It has voiced concerns that the proposed takeover could affect competition.

IAG's Aer Lingus bid is conditional on agreement from Europe's biggest budget airline Ryanair, which has a 30 percent stake and has indicated it may wait for the deal to secure EU approval before making a decision.

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(Editing by Pravin Char)