British Airways Parent Co. to Acquire Air Europa for €1 Billion

By Paul Riegler on 4 November 2019
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A BA aircraft on taxi at Heathrow

A BA aircraft on taxi at Heathrow

International Airlines Group, the parent company of British Airways and Spanish carrier Iberia, said Monday it had agreed to buy Air Europa for €1 billion ($1.11 billion).

The all-cash deal for the Spanish airline will give IAG the potential for a hub in Madrid and greater access to the South American transatlantic market.

Air Europa has a mostly Boeing fleet of 66 aircraft with 13 787 Dreamliners, 20 737s, and ten Airbus A330s which will be replaced by additional Dreamliners that are on order.  It also has 22 Boeing 737 Max aircraft on order.

IAG plans to retain the Air Europa brand, at least initially.

“Acquiring Air Europa would add a new competitive, cost effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership, therefore generating additional financial value for our shareholders,” said Willie Walsh, IAG’s CEO.

Air Europa operates flights to 69 domestic and international destinations.  In 2018, it carried 11.8 million passengers.

(Photo: Accura Media Group)

Accura News

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