IAG to buy Air Europa for 1000M Euros [UPDATE : deal terminated]
Nov 4, 2019, 9:30 pm
#46
Join Date: May 2003
Location: DEL
Programs: Mucci du Miel d'Or
Posts: 2,397
I think the brands question is a secondary issue and think IAG will be guided by whatever approach is the most promising and profitable, which may not all be worked out yet. I can see the issue of unions being a factor. IB employees toleration of others' competing for their work on possibly less generous terms, will be an issue. But I would not be that surprised if that was part of IAG's thinking, ie a lower cost unit where some flying could be shifted to and also used as a negotiating leverage with the existing unions, although I am sure that could get messy.
Agree with the thought above that we should not assume any standalone operation would necessarily join oneworld, cf. Aer Lingus.
Agree with the thought above that we should not assume any standalone operation would necessarily join oneworld, cf. Aer Lingus.
Nov 4, 2019, 9:35 pm
#47
Join Date: Apr 2008
Programs: Confirmed
Posts: 1,093
I think the brands question is a secondary issue and think IAG will be guided by whatever approach is the most promising and profitable, which may not all be worked out yet. I can see the issue of unions being a factor. IB employees toleration of others' competing for their work on possibly less generous terms, will be an issue. But I would not be that surprised if that was part of IAG's thinking, ie a lower cost unit where some flying could be shifted to and also used as a negotiating leverage with the existing unions, although I am sure that could get messy.
Agree with the thought above that we should not assume any standalone operation would necessarily join oneworld, cf. Aer Lingus.
Agree with the thought above that we should not assume any standalone operation would necessarily join oneworld, cf. Aer Lingus.
Nov 5, 2019, 3:19 am
#50
Join Date: May 2007
Programs: BA Blue, EI Silver, Honours Gold, Marriott Gold
Posts: 1,221
This article suggests that LATAM leaving OW has mainly repurcussions on AA not on BA and Qantas:
Nov 5, 2019, 3:39 am
#51
Join Date: Apr 2012
Location: LON
Programs: Mucci, BAEC, Eurostar
Posts: 3,459
If bilateral relationships makes sense for QF, BA and LA, I don’t see any reason why it wouldn’t continue? There is precedent for this. The QF/EK relationship and limited earn/burn/status recognition with EI/BA after they left oneworld, for example. Im sure things were like this before “alliance fever” gripped the industry around the millennium. Alliances seem to be less and less relevant of late, with bilateral relationships and JVs being the current fashion.
Nov 8, 2019, 3:15 am
#52
Moderator, Iberia Airlines, Airport Lounges, and Ambassador, British Airways Executive Club
Join Date: Feb 2010
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I noticed that the IAG Capital Day presentation has a better, clearer map of their network, so appending here.
Dec 18, 2020, 2:48 am
#55
Join Date: Dec 2012
Location: MAN, PSP
Programs: BAEC
Posts: 219
Deal apparently done...
https://skift.com/2020/12/18/iag-buy...fered-in-2019/
International Consolidated Airlines Group has agreed to buy Spanish carrier Air Europa for 500 million euros ($612.55 million) with payment to be deferred until 2026, news website El Confidencial reported on Friday, citing unnamed sources.
International Consolidated Airlines Group has agreed to buy Spanish carrier Air Europa for 500 million euros ($612.55 million) with payment to be deferred until 2026, news website El Confidencial reported on Friday, citing unnamed sources.
Dec 18, 2020, 5:09 am
#56
Join Date: Feb 2011
Posts: 5,797
That's a good deal for IAG. Access to a fleet of 787s and nearly new 737s, plus all the routes, for half what they originally wanted to pay.
I think the mid tier holiday market they operate in will come back with a vengeance in the next year or two.
I think the mid tier holiday market they operate in will come back with a vengeance in the next year or two.
Dec 18, 2020, 7:28 am
#57
Join Date: Aug 2013
Posts: 9,057
Hmm, I think it’s hard to say whether it’s a ‘good deal’. It’s certainly a better deal than it was, but if they hadn’t done the original deal, query if they would have agreed to 500m (or anything) now.
Dec 18, 2020, 8:49 am
#58
Moderator, Air Canada; FlyerTalk Evangelist
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No official word from IAG, so let's not get carried away yet.
Competition authorities haven't yet signed off on the transaction either. The last word I found on that was IAG saying in August that they hoped to have approval by the end of the year. But this being December 18th...
Although they've offered some slots to Volotea to address competition issues, the massive concentration this would create certainly presents a big hurdle to approval. For what it's worth, the EU has taken a dim view of Air Canada's deal to purchase Air Transat (a smaller Canadian airline that operates a bunch of leisure routes to Europe in the summer), and that review is still ongoing, 18 months since the deal was announced, despite it presenting a lot fewer competition issues to EU consumers.
The article you linked to also says it will require the Spanish government to give up two board seats at UX that it got in exchange for a bailout just a month ago. That seems like a pretty aggressive ask. The government certainly knew this acquisition was out there when they negotiated for, and won, that right.
Competition authorities haven't yet signed off on the transaction either. The last word I found on that was IAG saying in August that they hoped to have approval by the end of the year. But this being December 18th...
Although they've offered some slots to Volotea to address competition issues, the massive concentration this would create certainly presents a big hurdle to approval. For what it's worth, the EU has taken a dim view of Air Canada's deal to purchase Air Transat (a smaller Canadian airline that operates a bunch of leisure routes to Europe in the summer), and that review is still ongoing, 18 months since the deal was announced, despite it presenting a lot fewer competition issues to EU consumers.
The article you linked to also says it will require the Spanish government to give up two board seats at UX that it got in exchange for a bailout just a month ago. That seems like a pretty aggressive ask. The government certainly knew this acquisition was out there when they negotiated for, and won, that right.
Mar 26, 2021, 5:32 am
#59
Join Date: Oct 2009
Posts: 5,041
(google translated)
Updated March 22, 2021
The resulting airline would be a giant with a fleet of more than 150 aircraft and a pre-crisis revenue close to 8,000 millionSources close to the IAG airline explain to this digital that they continue to speak with both the State Society for Industrial Participations (SEPI) and the European Commission, maintaining the objective of closing the operation in the second half of 2021, when a reactivation is expected vigorous international air traffic.
In the specific case of Brussels, which must validate the purchase, the same sources detail that "there are permanent contacts and the required information is being sent as the negotiations progress." "It is an open and continuous process, in no case is all the information sent to Brussels at once," they clarify.
And as regards SEPI, it also continues to work on the search for a meeting point (a condition sine qua non to close the operation), in relation to the non-financial conditions associated with the support provided by the Government to Air Europa by amount of 475 million euros. Iberia's claim is that, once the purchase is made, it can adopt the measures it deems appropriate without having to go through the SEPI filter, currently on the airline's board of directors
https://translate.google.com/transla...pa-307753.html
Updated March 22, 2021
Iberia: arduous two-way negotiation by Air Europa
It is holding talks with SEPI and Brussels to try to close the operation in the second half of 2021The resulting airline would be a giant with a fleet of more than 150 aircraft and a pre-crisis revenue close to 8,000 millionSources close to the IAG airline explain to this digital that they continue to speak with both the State Society for Industrial Participations (SEPI) and the European Commission, maintaining the objective of closing the operation in the second half of 2021, when a reactivation is expected vigorous international air traffic.
In the specific case of Brussels, which must validate the purchase, the same sources detail that "there are permanent contacts and the required information is being sent as the negotiations progress." "It is an open and continuous process, in no case is all the information sent to Brussels at once," they clarify.
And as regards SEPI, it also continues to work on the search for a meeting point (a condition sine qua non to close the operation), in relation to the non-financial conditions associated with the support provided by the Government to Air Europa by amount of 475 million euros. Iberia's claim is that, once the purchase is made, it can adopt the measures it deems appropriate without having to go through the SEPI filter, currently on the airline's board of directors
https://translate.google.com/transla...pa-307753.html
Oct 6, 2021, 12:34 am
#60
Join Date: Oct 2009
Posts: 5,041
The sale of Air Europa to Iberia is still stuck. On the one hand, both companies are awaiting the first official resolution of the European Union’s Competition authorities,
the so-called Statement of Objections , a document that will arrive in the next few days but will not put an end to the negotiations.
The requirements that Brussels may impose on the operation were, until a few months ago, the main obstacle to overcome. Instead, with the course of events,
the focus of the negotiators, as confirmed to elEconomista sources of the sector, has been modified and is now focused on the financial situation of Air Europa.
But in a theoretical exercise in which everything went smoothly in Brussels, there is still an obstacle to overcome, the debt .
The company’s situation makes a purchase unfeasible without a renegotiation of the conditions.
https://financialinvestor24.com/news...iate-purchase/
the so-called Statement of Objections , a document that will arrive in the next few days but will not put an end to the negotiations.
The requirements that Brussels may impose on the operation were, until a few months ago, the main obstacle to overcome. Instead, with the course of events,
the focus of the negotiators, as confirmed to elEconomista sources of the sector, has been modified and is now focused on the financial situation of Air Europa.
But in a theoretical exercise in which everything went smoothly in Brussels, there is still an obstacle to overcome, the debt .
The company’s situation makes a purchase unfeasible without a renegotiation of the conditions.
https://financialinvestor24.com/news...iate-purchase/