Iberia owner, International Airlines Group (IAG), buys Air Europa for € 1 billion

Iberia owner, International Airlines Group (IAG), buys Air Europa for € 1 billion
Iberia owner, International Airlines Group (IAG), buys Air Europa for € 1 billion

Owners of Iberia, International Airlines Group (IAG), have agreed to purchase Air Europa for around € 1 billion which will see Iberia consolidating Madrid as the main Spanish hub for IAG and taking ownership of 100% of AE’s shares.

Air Europa has a fleet of 66 aircraft and carried around 12 million passengers in 2019. It is strategically positioned to connect Europe with Latin America, North America, and Africa.

The deal has been criticsed following the plan to axe 12,000 jobs from British Airways, another asset owned by IAG, but it has been defended by IAG CEO, Willie Walsh, who said:

“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 shareholders.”