The International Airlines Group (IAG) is discussing the termination of Air Europa’s purchase contract with Globalia, admitted the group’s chief financial officer, Stephen Gunning.
The acquisition agreement of the Spanish leisure airline was announced in November 2019 for a sum of 1 billion euros. However, the Covid-19 pandemic ended up undermining the business to the point that the IAG renegotiated the amounts to be paid in half.
Even so, the parent company of British Airways, Iberia and Aer Lingus, among others, considered that there were no more advantages in the acquisition of Air Europa.
Furthermore, the agreement was threatened by antitrust authorities in the United Kingdom and Europe, who were investigating whether the merger would reduce competition in air travel.
Under the original terms, Iberia would take over Air Europa and its hub in Madrid, in addition to expanding the group’s presence in South America.
Despite this, the CEO of the IAG, Luis Gallego, admitted that the company could propose a new agreement on different terms to Globalia.
Currently, Air Europa has a fleet of 45 aircraft, including 18 Boeing 787 Dreamliner, used on long-haul routes, another 18 Boeing 737-800, in addition to six E195 regional jets and three ATR turboprops.