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Iberia (IAG) to adquire Air Europa (SkyTeam) for 1bn, subject to regulator approval

Iberia (IAG) to adquire Air Europa (SkyTeam) for 1bn, subject to regulator approval

Old Nov 4, 19, 1:48 am
  #1  
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Iberia (IAG) to adquire Air Europa (SkyTeam) for 1bn, subject to regulator approval

Bold move.

Not so many synergies at the beggining. IB is an Airbus airline, UX is mostly Boeing. IB operates out of T4/T4S, UX out of T1-2-3, so connections would be terrible.

There is a presentation from IAG explaining the adquistion, can't put the link as I am with the phone.
schrodingerdog is offline  
Old Nov 4, 19, 2:04 am
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1bn cash transaction, to be completed in second half of 2020, however its subject to regulatory approval. I am not a 100% sure it the EC is going to allow this, since it would mean going to one competitor instead of two from Madrid, while IAG would get a really strong position into Latin America.

Link to presentation you mean (I guess): https://www.iairgroup.com/en/newsroo...iag-air-europa
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Old Nov 4, 19, 2:26 am
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Does this add anything to the OW route map? I thought air Europa and iberia had more or less identical destination lists (although I dont know)
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Old Nov 4, 19, 2:32 am
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Originally Posted by nancypants View Post
Does this add anything to the OW route map? I thought air Europa and iberia had more or less identical destination lists (although I dont know)
A few secondary destinations in South America - Brazil, Cordoba (Argentina) / Asuncion - but basically the same routes.

Competition authorities are going to have a lot to say about this one...
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Old Nov 4, 19, 3:12 am
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Originally Posted by schrodingerdog View Post
Bold move.

Not so many synergies at the beggining. IB is an Airbus airline, UX is mostly Boeing. IB operates out of T4/T4S, UX out of T1-2-3, so connections would be terrible.

There is a presentation from IAG explaining the adquistion, can't put the link as I am with the phone.
T4/T4S can easily absorb more traffic, may be not all of UX operation but close to that
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Old Nov 4, 19, 3:27 am
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Originally Posted by nancypants View Post
Does this add anything to the OW route map? I thought air Europa and iberia had more or less identical destination lists (although I dont know)
They have some complementary destinations in Latin America and no doubt they'll reshuffle some of them. UX has a significant and young long-haul fleet and is acquiring more.
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Old Nov 4, 19, 4:20 am
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Originally Posted by craigthemif View Post
A few secondary destinations in South America - Brazil, Cordoba (Argentina) / Asuncion - but basically the same routes.

Competition authorities are going to have a lot to say about this one...
An interesting case for the competition authories

El Pais says that 72% (!) of all passengers travelling on domestic flights in Spain flew with Iberia, Air Europa, Vueling or Air Nostrum. (Data provided by AENA, flights from January to September 2019)
testman is offline  
Old Nov 4, 19, 4:27 am
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Originally Posted by testman View Post
An interesting case for the competition authories

El Pais says that 72% (!) of all passengers travelling on domestic flights in Spain flew with Iberia, Air Europa, Vueling or Air Nostrum. (Data provided by AENA, flights from January to September 2019)
Well... either IB/UX will reduce prices to keep Ryanair and other LCCs from increasing their 28%, or Ryanair will just steal any attractive business.

I think international routes will be the bigger issue. No effective competition at all for Argentina, Peru, Caribbean, etc. Norwegian must be thrilled at the opening...
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Old Nov 4, 19, 4:53 am
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They have a much easier argument for the competition because MAD isn't slot controlled. So their existence doesn't prevent anyone else from entering the market.
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Old Nov 4, 19, 5:38 am
  #10  
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Originally Posted by LupineChemist View Post
They have a much easier argument for the competition because MAD isn't slot controlled. So their existence doesn't prevent anyone else from entering the market.
It is not enough for it being theoretically possible to enter the market. You also need to see whether one can realistically expect new entrants. Compare to the Aegean/Olympic merger that was blocked by the EU Commission. It was eventually allowed second time round but only on the basis that OA was moribund and would not survive on its own anyway. I do not think that this can be said of UX.
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Old Nov 5, 19, 7:36 am
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Hope it will never happen... Globalia (UX parent Company) is making money [ https://www.globalia.com/en/financie...5535E7A8D19B2D ], so a different situation that with A3/OA or BA/BD...
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