Air Europa is the new subsidiary of the IAG Group (International Airlines Group). Focused on leisure travel, the Spanish carrier had 80% of its shares acquired from Globalia for 400 million euros.
IAG is one of the strongest air travel conglomerates in the world, responsible for airlines such as British Airways, Iberia and Aer Lingus and which already owned 20% of Air Europa since August last year.
The deal, announced on Friday, puts an end to negotiations that began in November 2019 when IAG announced the acquisition of Air Europa for 1 billion euros, double the amount paid now.
The Covid-19 pandemic, however, cooled the business and at the end of 2021 the IAG withdrew the initial proposal in the face of the shrinkage of the Air Europa operation – if in 2019 it transported 13 million passengers, last year that total fell to 10 million people.
Under new conditions, the partnership again evolved as air travel resumed. This time, Globalia will become a shareholder of the IAG group as part of 100 million of the 400 million euros will be paid in shares.
As before, the agreement still depends on the approval of the authorities of the countries where the companies are headquartered.
“The agreement reached with IAG endorses the success of the plan carried out to consolidate Air Europa as an international reference after the pandemic, demonstrating its viability and good work, before and after the biggest crisis in the aeronautical sector,” said Jesús Nuño de La Rosa, CEO of Air Europa Holding.
“With the acquisition of Air Europa now agreed but subject to regulatory and other approvals which could take around 18 months, we are intending to welcome another leading airline to the group,” explained Luis Gallego, chief executive of IAG.