- Air Europa optimistic despite failed takeover by IAG
Air Europa, the Spanish airline, looks optimistically towards the future following the collapse of the planned takeover by aviation conglomerate IAG. The future remains "sustainable and encouraging," according to a statement. Despite market instability, Air Europa's business model is "solid and viable." IAG, the parent company of British Airways and Iberia, withdrew its takeover offer the previous day, citing insurmountable hurdles due to concerns from the EU Commission.
European competition regulators remained skeptical, despite some concessions from IAG, that the merger could reduce competition on domestic, short-haul, and long-haul routes to and from Spain. A final decision had not been made in Brussels. IAG now plans to pay a €50 million compensation to Air Europa's owner, Spanish conglomerate Grupo Globalia.
IAG, which also owns Vueling, Aer Lingus, and Level, and Air Europa operate extensive networks of domestic, short-haul, and long-haul routes, including those between the Spanish mainland and the Canary Islands and the Balearics, and on Spanish routes where high-speed trains are not an alternative. In takeover plans announced about a year and a half ago, IAG intended to acquire the remaining 80% of Air Europa's capital for €400 million, with the Air Europa brand continuing under Iberia's leadership.
In 2023, Air Europa, with 52 aircraft and approximately 4,400 employees, achieved a turnover of around €2.7 billion, a 18% increase from 2022. The net profit was €165 million. In 2022, it narrowly avoided losses with a profit of €472,000.
The EU Commission continued to express reservations about the takeover, despite IAG making some concessions, as they believed the merger could potentially lessen competition on various routes. The Commission has yet to make a final decision on the matter.
