Iberia backs out of Air Europa purchase
Dec 15, 2021, 1:59 am
#1
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Iberia backs out of Air Europa purchase
This morning’s headlines indicate that IAG / Iberia are willing to pay the $40 million indemnity clause for backing out of their agreed purchase of Air Europa.
Iberia had already cut the purchase price by 50%, which AE agreed to, but now it seems they just can’t rationalize the purchase of another low-cost, no-service airline. They already have Level and Iberia Express.
Reports are that Air Europa has already burned through the 475 million euros provided by the Spanish State’s “Covid rescue” fund, 73% of that sum just for operating expenses.
Iberia had already cut the purchase price by 50%, which AE agreed to, but now it seems they just can’t rationalize the purchase of another low-cost, no-service airline. They already have Level and Iberia Express.
Reports are that Air Europa has already burned through the 475 million euros provided by the Spanish State’s “Covid rescue” fund, 73% of that sum just for operating expenses.
Dec 16, 2021, 8:13 am
#2
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They already have Iberia Mainline, Level and Iberia Express.
Dec 16, 2021, 2:00 pm
#3
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Apparently, IAG even pays 75m, i.e. 35m more: https://www.reuters.com/business/aer...ns-2021-12-16/
This premium seem to be sort of an option price, to keep the door open. I don’t know, what a new deal could look like. Perhaps some sort of code share agreement on the Latam routes served by only one of them.
This premium seem to be sort of an option price, to keep the door open. I don’t know, what a new deal could look like. Perhaps some sort of code share agreement on the Latam routes served by only one of them.
Dec 18, 2021, 2:23 am
#4
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Correcting it for you
Quote:
They already have Iberia Mainline, Level and Iberia Express.
Nearly correct, TPJ. But don't know about the low cost especially on routes where Iberia has the non-stop monopoly. Have been flying MAD - ORD recently - only Iberia is non-stop. But you pay between 2 and 3 times what you would pay on TAP to travel 3.5 hours longer, with one stop in LIS. Of course, it is TAP, and there's always the chance that you may end up in the Azores. But still, quite a few nice dinners pocketing the price difference...
Quote:
They already have Iberia Mainline, Level and Iberia Express.
Nearly correct, TPJ. But don't know about the low cost especially on routes where Iberia has the non-stop monopoly. Have been flying MAD - ORD recently - only Iberia is non-stop. But you pay between 2 and 3 times what you would pay on TAP to travel 3.5 hours longer, with one stop in LIS. Of course, it is TAP, and there's always the chance that you may end up in the Azores. But still, quite a few nice dinners pocketing the price difference...
Dec 20, 2021, 4:51 am
#6
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Currently, Valentin Lago is the CEO of Air Europa.
Javier Hidalgo used to be Globalia's CEO (but he resigned earlier this year). He used to be the guy that negotiated the sale of Air Europa to IB/IAG - he also managed some consolidation in the travel-agencies market. Currently, it's Javier's sister, Maria José Hidalgo, Globalia's CEO. Maria José Hidalgo used to be Air Europa's general director.
Juan José Hidalgo (Javier Hidalgo's and Maria José Hidalgo's father) is the owner of Globalia Corporation (which owns Air Europa + more tourism focused business). Currently is Juan José Hidalgo the one who negotiates with Iberia the sale of Air Europa.
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Yes, I'd buy Air Europa. Iberia is desperate to acquire Air Europa.
Javier Hidalgo used to be Globalia's CEO (but he resigned earlier this year). He used to be the guy that negotiated the sale of Air Europa to IB/IAG - he also managed some consolidation in the travel-agencies market. Currently, it's Javier's sister, Maria José Hidalgo, Globalia's CEO. Maria José Hidalgo used to be Air Europa's general director.
Juan José Hidalgo (Javier Hidalgo's and Maria José Hidalgo's father) is the owner of Globalia Corporation (which owns Air Europa + more tourism focused business). Currently is Juan José Hidalgo the one who negotiates with Iberia the sale of Air Europa.
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Yes, I'd buy Air Europa. Iberia is desperate to acquire Air Europa.
Dec 20, 2021, 5:03 am
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Dec 20, 2021, 5:27 am
#8
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IB wants to get rid of its main competitor - the only way possible is by acquisition. 100% ownership failed dramatically. Let's see whether they manage to convince the EC a 49% ownership.
Dec 20, 2021, 5:29 am
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Competitors also sometimes go bankrupt and shut down of their own accord... See dozens of European airlines who tried to compete with a dominant flag carrier...
Dec 20, 2021, 10:29 am
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Dec 20, 2021, 11:34 am
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Dec 20, 2021, 12:10 pm
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Dec 20, 2021, 5:34 pm
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Olympic was merged into Aegean. Sabena is now Brussels. (it was SN Brussels for awhile)
Dec 21, 2021, 4:26 am
#15
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-In 2009, IB carried 22.8M PAX to/from MAD. UX 4,4 M PAX to/from MAD.
-In 2019, IB carried 26.2M PAX to/from MAD. UX 10M PAX to/from MAD.
We also know that IB was happy to pay 1 BILLION EURO to acquire UX in 2019.
We also know that IB is pumping now 75 MILLION EURO in UX. That cash is not going to the owners, it's going into UX cash-balance. We also know Spanish Gov won't let UX fail.
We also know that in the next few weeks IB and UX will make public a new acquisition agreement, likely to be only 49% instead of full acquisition. We also know Luis Gallego said the acquisition is strategic for IB, MAD and Spain in general.