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IAG buys Air Europa


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IAG buys Air Europa amid aviation sector upheaval

The British Airways owner will take over the airline in a billion-euro deal.

British Airways owner IAG agreed on Monday to buy Spain's Air Europa as the global aviation sector charts a path through high-profile failures, fierce competition, economic woes and high fuel prices.

London-listed International Airlines Group said in a statement that it has signed a transaction agreement with Air Europa owner Globalia in a deal worth 1.0 billion euros ($1.2 billion) to boost its long-haul routes to Latin America and the Caribbean - and also cement Madrid airport's status as a top aviation player.

https://www.euronews.com/2019/11/04/iberia-owner-iag-buys-rival-air-europa-for-1-billion-to-boost-madrid-hub

 

IAG plans to acquire Air Europa

The plan is for the deal to close in the second half of 2020.

IAG has agreed to pay Air Europa a break fee of €40 million in the event that the transaction fails to receive the necessary regulatory approvals, and either party elects to terminate the transaction agreement.

This is massive news for a variety of reasons:

  • Air Europa would leave the SkyTeam alliance, and would join the oneworld transatlantic joint venture, which includes American, British Airways, Iberia, and Finnair (note that there’s no mention of them actually joining oneworld, but rather just of them joining certain joint ventures)
  • IAG already owns Spain’s two biggest airlines (Iberia and Vueling), and with this deal they’d also own Spain’s third largest airline
  • Air Europa would adopt Avios as their points currency

 

 

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