IAG to Take Full Control of Air Europa By Late 2024

IAG (International Consolidated Airlines Group), parent company of Iberia and British Airways, recently announced that it has agreed with Spain’s Globalia to acquire the remaining 80 percent of Air Europa for 400 million euros. IAG already owns 20 percent of Air Europa.

According to a statement released Thursday, the agreement will enable IAG’s Madrid hub to compete on an equal footing with other European hubs and consolidate its position in the South Atlantic.

“Madrid is the main gateway between Latin America and Europe and there are opportunities to expand its network, providing significant benefits to our customers, employees and shareholders,” IAG Chief Executive Luis Gallego said.

The agreement with Globalia (owner of Air Europa) for the full acquisition of the Spanish airline is subject to regulatory and other approvals, which could take around 18 months (late 2024).

Thursday’s statement said that IAG will pay 200 million euros from the 400 million once the deal is approved by antitrust authorities. The remaining 200 million euros will be paid once the deal closes (100 million euros will be paid in IAG shares and the final 100 million euros in cash).

It is reminded that in November 2019, IAG had announced that it intended to acquire Air Europa for 1 billion euros. However, the deal was not finalized before the start of the Covid-19 pandemic and in 2021 it was made known that IAG was renegotiating the purchase. In August 2022, IAG acquired a 20 percent stake in Air Europa for 100 million euros.

IAG aims to increase connectivity to Asia

By acquiring Air Europa, IAG expects to enhance its position in the highly attractive Europe to Latin America and Caribbean market and open routes to new destinations in Asia.

The company also expects to deliver significant customer benefits by unlocking further network opportunities and providing access to IAG’s Avios loyalty scheme.

Photo source: Air Europa

A well-recognised brand and one of the leading private airlines in Spain, Air Europa currently operates scheduled domestic and international flights, including European and longhaul routes to Latin America and the Caribbean.

The airline carried 13.1 million passengers in 2019, 4.3 million in 2020, 5.0 million in 2021 and 10.0 million in 2022.

Air Europa currently has an operating fleet of 50 aircraft with 15 aircraft on order via aircraft lessors. All aircraft are on operating lease, apart from one Boeing 737 finance lease.

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

Air Europa is represented in Greece by TAL Aviation.