IAG Invests €16 Million to Protect Stake in Air Europa
IAG International Airlines Group, the parent company of Iberia and British Airways, has announced an investment of EUR 16 million (USD 16.8 million) in Air Europa (UX) to prevent the dilution of its 20% ownership stake in the Spanish airline. This decision comes after Globalia, which owns 80% of Air Europa, revealed plans to inject EUR 65 million (USD 68.4 million) into the carrier in a bid to restore profitability and secure positive cash flow by the end of the year.
Earlier this year, IAG attempted to acquire Air Europa entirely, but the European Commission blocked the deal. To avoid losing its position in the airline, IAG opted to participate in the capital increase, ensuring its stake remains intact. Without this investment, IAG’s ownership in Air Europa would have been reduced to 17%.
IAG’s investment in Air Europa reflects the group’s commitment to maintaining its rights as a minority shareholder while adhering to financial criteria. The company’s decision is in line with its long-term strategic goals to maintain a stake in Air Europa, despite the challenges facing the airline.
While IAG remains a key player in Air Europa’s future, the Spanish newspaper El País’ subsidiary, Cinco Días, recently reported that Air France-KLM Group is currently in the leading position to acquire Air Europa in the future.
IAG’s continued involvement with Air Europa underscores its strategy to hold onto valuable assets, even amidst external challenges. The future of the Spanish carrier may hinge on additional investment and restructuring efforts as it seeks to return to profitability in the coming months.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com