IAG said today it will loan Air Europa parent Globalia €100 million with the option to convert it into a stake of up to 20 per cent in Madrid-based Latin America specialist.
International Airlines Group has pulled out of a deal to acquire Air Europa. The aviation giant originally agreed to purchase the carrier from owners, Globalia, for €1 billion in late 2019.
The Competition & Markets Authority has a launched an investigation into the proposed takeover of Air Europa by International Airlines Group.
Having initially signed to pay €1 billion for the carrier in November 2019, the European aviation giant has now approved a deal valued at €500 million.
The agreement, which will come into force in January, will enable Air Europa passengers flying to its four Brazilian destinations - Sao Paulo, Recife, Fortaleza and Salvador - to connect on with 20 Brazilian cities on the Gol network.
Air Europa is one of the leading private airlines in Spain, operating scheduled domestic and international flights to 69 destinations, including European and long-haul routes to Latin America, the United States of America, the Caribbean and North Africa.
Air Europa will consolidate its presence in Central America with the launch of its new route to Panama in June. At the same time, the carrier will offer passengers a codeshare option with Copa Airlines to travel on from Panama to Costa Rica, Nicaragua, El Salvador or Guatemala.
Gate Gourmet and gateretail, two gategroup companies, have been awarded a six-year contract to serve Spanish carrier Air Europa. The Majorcan-headquartered carrier is 100 per cent owned by the Globalia group and is a member of the SkyTeam alliance.
In a major $3.5 billion investment in new aircraft announced in 2015 the target was for 22 Dreamliner aircraft to be delivered by 2022 – this has now been increased to 27 Dreamliners by 2022.