IAG Considers Selling Minority Stake in Air Europa Amid Financial Struggles
IAG International Airlines Group is considering the sale of its 20% minority stake in Air Europa, depending on the future direction of the airline’s majority shareholder, Globalia. The decision comes as Globalia seeks new investors and fresh capital to manage Air Europa’s EUR615 million (USD665 million) debt incurred during the COVID-19 pandemic.
IAG’s CEO, Luis Gallego, told Reuters that the sale of its minority stake will depend on what actions Globalia takes regarding the company. Earlier this month, it was reported that Air Europa had received investment offers from Air France-KLM and Lufthansa Group, who are looking to acquire 51% and 25% of the carrier, respectively.
Air Europa is facing significant financial pressure with two major loans due by 2026 and 2028. These include a EUR475 million (USD513 million) bailout from Spain’s sovereign wealth fund (Sociedad Estatal de Participaciones Industriales – SEPI) and EUR140 million (USD152 million) from the Spanish state-run Instituto de Crédito Oficial (ICO).
IAG’s potential sale of its stake in Air Europa remains linked to how Globalia moves forward with its plans to secure additional funding and resolve the airline’s debt issues. Additionally, Gallego confirmed that IAG is still interested in acquiring TAP Air Portugal, despite potential delays due to political changes in Portugal.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com