IAG buys Air Europa for 1000M Euros

Old Nov 4, 19, 2:31 am
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IAG buys Air Europa for 1000M Euros

Just landing at LHR and saw the news. Apologies if it has been posted somewhere else.

Link to the news in Spanish:

https://amp.elmundo.es/economia/empr...2a88b4616.html
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Old Nov 4, 19, 2:36 am
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Interesting, didnít see that one coming,

I expect the competition authorities will take a long hard look at it. One to watch...
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Old Nov 4, 19, 2:36 am
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Originally Posted by Etxebas View Post
Just landing at LHR and saw the news. Apologies if it has been posted somewhere else.

Link to the news in Spanish:

https://amp.elmundo.es/economia/empr...2a88b4616.html
It has been posted on the Iberia forum as it is IB taking over UX. Kind of the what BA did with BD. Surprising news I have to say.
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Old Nov 4, 19, 2:45 am
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Originally Posted by Ldnn1 View Post
Interesting, didnít see that one coming,

I expect the competition authorities will take a long hard look at it. One to watch...
Probably not as it won't make any routes a monopoly after the takeover unlike when BA took over BD.
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Old Nov 4, 19, 2:48 am
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A nice young fleet. Although donít their 787ís have Trent 1000ís?
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Old Nov 4, 19, 2:55 am
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I canít imagine that the regulators will allow this out some concessions. 84% of the Spanish domestic share?

If IAG wants to improve the MAD hub I think they first need to address the customer service and ease of doing business issues at Iberia.
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Old Nov 4, 19, 3:08 am
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Whilst legally Iberia's holding company is buying it, Air Europa is going to remain separate in the medium term.

Looks more like a BA / EI relationship than BA / BMI. Air Europa will be popped into the North American JV as a separate partner, for example.

Part of this may be the notice period required to leave SkyTeam. Interestingly IAG forgot to mention SkyTeam in the official press release!

My initial take here: https://www.headforpoints.com/2019/1...n-a-e1bn-deal/

I think I speak on behalf of everyone in travel media when I say that we could have done without this on the main day of World Travel Market :-)
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Old Nov 4, 19, 3:13 am
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Originally Posted by Raffles View Post
Whilst legally Iberia's holding company is buying it, Air Europa is going to remain separate in the medium term.

Looks more like a BA / EI relationship than BA / BMI. Air Europa will be popped into the North American JV as a separate partner, for example.

Part of this may be the notice period required to leave SkyTeam. Interestingly IAG forgot to mention SkyTeam in the official press release!

My initial take here: https://www.headforpoints.com/2019/1...n-a-e1bn-deal/

I think I speak on behalf of everyone in travel media when I say that we could have done without this on the main day of World Travel Market :-)
In the powerpoint presentation supporting the Relevant Facts document submitted to the Spanish market regulator (CNMV), it clearly states that UX will be leaving SkyTeam (page 14):

https://www.cnmv.es/Portal/HR/verDoc...-6070bbea9019}
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Old Nov 4, 19, 3:21 am
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Now the important question - do we get TPs and Avios on UX?
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Old Nov 4, 19, 3:29 am
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Longer term would Air Europa be a stronger brand name than Level and Vuelling?
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Old Nov 4, 19, 3:31 am
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Air Europa will be joining Avios although I suspect it will be closer to an Aer Lingus arrangement (eg currency but no status or benefits).

It will be run by Iberia (gulp) as a standalone and the brand "will initially be retained" which doesn't sound very positive for the longer term.
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Old Nov 4, 19, 3:38 am
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The Break clause is quite telling as Raffles points out. IAG are professionals so will have done the sums but I would not bank on this going through.
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Old Nov 4, 19, 3:40 am
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The sale is subject to regulatory approval.
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Old Nov 4, 19, 3:46 am
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Well, I guess that is the "revenge" for LATAM leaving OW. If it were not for that, this should certainly raise enormous competition concerns! And I do not really see why IB would fly to some of the destinations with both mainline and with Air Europa; maybe split into different markets, like Air Canada does it with Rouge - IB for business-heavy routes and UX for leisure-heavy?
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Old Nov 4, 19, 3:52 am
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Originally Posted by Tiger_lily View Post
A nice young fleet. Although donít their 787ís have Trent 1000ís?
That could be considered a fleet strength and not a fleet weakness.
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