Air France-KLM Interested in Acquiring Stake in Air Europa
Air France-KLM has confirmed its “interest” in acquiring a 20% stake in the Spanish airline Air Europa, as news of the talks between the French-Dutch airline group and Air Europa’s owner, Globalia, circulates. The announcement, made on November 27, 2024, highlights Air France-KLM’s strategic interest in expanding its presence in Spain.
Globalia, which holds an 80% stake in Air Europa, confirmed the discussions but clarified that “nothing is closed” at this stage. According to reports from el Economista, negotiations have been ongoing for several weeks, but details about the potential agreement remain under wraps.
A 20% stake in Air Europa would likely fall below the threshold requiring approval from European Union regulators, meaning the deal could proceed without formal regulatory involvement. This low-level investment, estimated to be less than €100 million ($105 million), is significantly smaller than the €100 million IAG paid in 2022 for its 20% stake in Air Europa, making the potential Air France-KLM investment likely higher in value.
Air France-KLM’s main competitor, International Airlines Group (IAG), already holds a 20% share in Air Europa, but the Spanish airline’s future remains uncertain following IAG’s decision to withdraw from its full acquisition bid in August 2024. In an official statement, IAG cited the “regulatory environment” as the primary reason for abandoning its acquisition plans, opting instead to continue its investment in Air Europa without pursuing full ownership.
Air France-KLM’s interest comes at a time when Air Europa’s ownership structure is being closely scrutinized by both domestic and international stakeholders. The Spanish carrier is currently Spain’s second-largest airline, and any changes in its ownership could reshape the competitive dynamics within Europe’s airline market. The ongoing discussions between Air France-KLM and Globalia signal a potential shift in the European aviation landscape, with further developments likely to unfold in the coming months.
As the situation progresses, more details will be expected regarding the exact terms of the proposed deal and whether any hurdles might arise in securing a stake in Air Europa. For now, both Air France-KLM and Globalia have emphasized that no final agreement has been reached.
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