In Spain, Air Europa has just received a new offer to acquire 51% of its shares, following that of Lufthansa. The airline has attracted the attention of the Parisian group Air France-KLM, which proposed in its application a payment of 300 million euros, in addition to committing to taking over the company's debt, which amounts to 475 million euros. To date, the Spanish government is the holder of the shares, having previously paid this sum in the form of loans in the aftermath of the COVID-19 pandemic.
With its 80% held by Globalia Corporación Empresarial S.A, a Spanish conglomerate specializing in the tourism and air transport sector, Air Europa is a wholly-owned Spanish company. Based in Palma de Mallorca and founded by Juan José Hidalgo in 1997, Globalia Corporación Empresarial S.A. currently shares its shares with IAG (International Airlines Group), which owns British Airways, Iberia, but also Vueling, Aer Lingus and Level.
Low cost and multiple flights to Latin America
With Air Europa, the parent company operated numerous flights in Europe, but also long-haul flights, particularly in Latin America with Buenos Aires (Argentina), São Paulo (Brazil), Lima (Peru), Bogota (Colombia), Caracas (Venezuela), but also Cancún (Mexico) and Havana (Cuba). For Air France-KLM, a majority stake would be a way to bring this long-haul offering back to low-cost prices, where the French group has only known low-cost flights in across short and medium-haul (Transavia).
In 2024, Air Europa closed a strong year, with 12 million passengers, up 4.4%. Its revenues increased by 6%. Its fleet consists of around fifty aircraft, including Boeing 737-800s and relatively new 787 Dreamliners, including its 787-9s, which are barely 5 years old on average. To replace its 737-800s, Air Europa had ordered 20 737 MAX 8s from Boeing. Deliveries began last year.
Consolidation in the airline sector will not stop there, as IAG, Lufthansa, and Air France-KLM could find themselves at odds over another issue, that of the Portuguese airline TAP Air Portugal. It remains to be seen how the European Commission will react, having already set difficult conditions for IAG, which wanted to increase its stake by 20%. Among them, the obligation to cede 40 or even 52% of Air Europa flights to the competition. Which explains its removal from the file.
Source: Air Journal
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