The purchase price is 500 million euros and will only have to be paid in six years.
In addition to British Airways, IAG already owns the Spanish airlines Iberia and Vueling, the Irish Aer Lingus and the meanwhile insolvent Level.
The International Airlines Group (IAG) swallows the Spanish Air Europa at a bargain price. With 500 million euros, the group is only putting half as much on the table as it had announced in November 2019 and will not have to transfer the purchase price for six years, as the IAG announced on Wednesday. In addition to British Airways, IAG already owns the Spanish airlines Iberia and Vueling, the Irish Aer Lingus and the meanwhile insolvent Level.
Although the Group's airlines, like the entire industry, are suffering from the consequences of the corona pandemic, IAG had not lost interest in Air Europa. With it, the company can expand its hub in Madrid and, among other things, offer additional flights to South America. In addition, significant synergies are expected, said IAG boss Luis Gallego. He is pleased that the group will only have to transfer the purchase price when the expected recovery from the corona pandemic is already in full swing.
Air Europa is currently part of the Globalia investor group. The airline was kept alive in the corona crisis with aid loans from the state holding company Sepi. The renegotiation of these lines of credit is a condition for the completion of the transaction, which is expected in the second half of the year.
The competition watchdogs still have to approve the takeover. Competitors like Ryanair had already imposed conditions in the past in order to prevent distortions of competition.
The takeover met with a positive response from investors. The IAG shares gained two percent.
