Category Archives: Air Europa

IAG and Globalia are moving ahead to cancel the Air Europa takeover

From Reuters:

IAG and Globalia are advanced talks to undo the previously-agreed plan to acquire Air Europa according to Reuters.

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The CMA is investigating the anticipated acquisition of Air Europa Líneas Aéreas by IAG

IAG / Air Europa merger inquiry

The Competition and Markets Authority (CMA) (UK) issued this short statement:

The CMA is investigating the anticipated acquisition of Air Europa Líneas Aéreas, S.A.U., Aeronova S.L.U., León Activos Aeronáuticos, S.L.U. and Globalia Lease Finance Seven Limited (together, Air Europa) by International Consolidated Airlines Group, S.A.

The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

ITA Airways and Air Europa sign a codeshare agreement

ITA Airways and Air Europa have signed a broad codeshare agreement connecting the networks of the two airlines. Thanks to this commercial partnership, which starts today 8th November 2021, ITA Airways will increment its operations and commercial offer on Spain and Canary and Balearic Islands.
Customers will have more options and better flight schedules when traveling through the two airlines’ hubs in Rome and Madrid. Following this agreement, ITA Airways’ and Air Europa’s customers can now fly seamlessly to their desired destination with a single ‘unique’ ticket, checking-in at the airport of departure, and collecting their checked-through baggage at the end of their trip in the arrival airport. ITA Airways will apply its ‘AZ’ code on services operated by Air Europa between Italy and Spain. Similarly, Air Europa will code share AZ flights between Barcelona, Madrid and Rome, connecting Italian domestic services beyond Rome Fiumicino Airport and selected connecting international services.
Marco Finelli reporting from Italy.

Air Europa owner Globalia to furlough 60% of staff if COVID-19 support ends

From Reuters:

“Globalia will seek to reach an alternative furlough agreement with its unions should the Spanish government not extend its COVID furlough program, which will expire at the end of this month.”

Air Europa to operate 87% of its routes to the Americas from July

Air Europa Boeing 737-85P WL EC-MPG (msn 60586) ZRH (Rolf Wallner). Image: 952418.

Air Europa has made this announcement:

From July we will operate 87% of the routes to America, with flights to Miami, New York, Panama, Salvador de Bahia etc.

From our hub in Madrid we will connect with 11 European destinations and more than 20 Spanish domestic destinations.

Top Copyright Photo: Air Europa Boeing 737-85P WL EC-MPG (msn 60586) ZRH (Rolf Wallner). Image: 952418.

Air Europa aircraft slide show:

Air Europa to resume flights to New York and Miami

Promoting X (Equis) by Nicky Jam and J Balvin

Air Europa has made this announcement:

Air Europa is recovering its flight network with the US and from next June will fly aboard its most modern and efficient fleet, the Boeing 787 Dreamliner,to Miami and New York.

With three weekly frequencies, specifically on Tuesdays, Thursdays and Saturdays; Air Europa will resume its flights to Miami on June 12, and resume its operation to New York on June 25 also with three flights a week : Wednesdays, Fridays and Sundays.

Air Europa’s return to its U.S. destinations is due to its commitment to progressively increase connectivity and flight options to its passengers, as restrictions are removed and whenever maximum safety conditions are ensured.

Air Europa will fly to Miami and New York with its Dreamliner fleet, the most efficient aircraft of how many exist on the market, capable of reducing flight time by 45 minutes and reducing gas emissions by 20% compared to any other aircraft of similar size. In addition, the Dreamliner fleet has HEPA or high-efficiency filters, which are used in hospital environments, and are capable of capturing virus-containing particles with an efficiency of more than 99.9%.

Top Copyright Photo: Air Europa Boeing 787-8 Dreamliner EC-MLT (msn 36414 (X (Equis) by Nicky Jam and J Balvin) AMS (Ton Jochems). Image: 948500.

Air Europa aircraft slide show:

IAG to buy Air Europa for half the previously agreed price

IAG reinforced its leadership positions in its home markets of London, Madrid, Barcelona, Dublin and Rome with the addition of 48 new routes.

Our routes

The Group portfolio consists of unique operating companies, from full service longhaul to low-cost shorthaul carriers, each targeting specific customer needs and geographies.

Aer Lingus

During 2018, Aer Lingus continued to profitably grow its North American and European networks. Growth was focussed on its North American network, with new routes launched from Dublin to Philadelphia and Seattle.

British Airways

British Airways operates the most comprehensive network between Europe and North America. Following new route announcements to Pittsburgh and Charleston, soon they will serve 34 destinations, consolidating their position as the largest longhaul carrier into North America by points served. They had great success in opening routes to markets such as Austin, New Orleans and Nashville and will look for further opportunities in the US. As they develop the longhaul network further, their relationship with joint business partners will remain critical in offering customers better frequency and easier connections in the markets they serve. 2019 will see them launch new services to Islamabad and Osaka as we continue to expand their presence elsewhere in the world.

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Iberia increased overall capacity by 7 per cent with expansion across its network. In longhaul it launched services to San Francisco. A major milestone was reached in its efforts to build a strategic alliance with LATAM, with the Chilean Free Competition Defence Court approving their proposed joint business. Iberia used Iberia Express to strengthen its network, adding four new destinations.

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The LEVEL brand was selected as the brand to launch IAG’s new shorthaul operations from Vienna, operating 14 shorthaul routes to a mix of European destinations including London, Paris, Barcelona, Ibiza, Milan, Larnaca and Dubrovnik. Longhaul LEVEL services also launched from Paris to the French Caribbean, Montreal and New York.

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Vueling strengthened its positions in key markets by 3 points of market share in Barcelona and Spain-Canaries and 4 points in Spain-Balearics. We also maintained capacity discipline and flexibility to quickly adjust to future headwinds.

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Air Europa aircraft photo gallery:

Air Europa aircraft slide show:

IAG to acquire Air Europa for €1 billion, Air Europa to be run by Iberia

International Consolidated Airlines Group (IAG) and Globalia are pleased to announce that definitive transaction agreements have been signed under which IAG’s wholly owned subsidiary, IB OPCO Holding S.L. (Iberia), has agreed to acquire the entire issued share capital of Air Europa for €1 billion to be satisfied in cash at Completion  and subject to a closing accounts adjustment.


  • Transforms IAG’s Madrid hub into a true rival to Europe’s four largest hubs: Amsterdam, Frankfurt, London Heathrow and Paris Charles De Gaulle.
  • Re-establishes IAG as a leader in the highly attractive Europe to Latin America and Caribbean market.
  • Offers significant synergy potential in terms of cost and revenue.
  • EPS accretive in the first full year and accretive to IAG’s return on invested capital by the fourth year after Completion.
  • Completion is expected to take place in H2 2020 following receipt of relevant approvals.

Commenting on today’s announcement, Willie Walsh, Chief Executive of IAG, 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 our shareholders.

IAG has a strong track record of successful acquisitions, most recently with the acquisition of Aer Lingus in 2015 and we are convinced Air Europa presents a strong strategic fit for the group.”

Javier Hidalgo, Chief Executive of Globalia, said:

“For Globalia, the incorporation of Air Europa to IAG implies the strengthening of the company’s present and future that will maintain the path followed by Air Europa in the last years. We are convinced that the incorporation of Air Europa to a group such as IAG, who over all these years has demonstrated its support to the development of airlines within the group and the Madrid hub, will be a success”.

Luis Gallego, Chief Executive of Iberia, said:

“This is of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs. Following this agreement, Madrid will be able to compete with other European hubs on equal terms with a better position on Europe to Latin America routes and the possibility to become a gateway between Asia and Latin America.”

Strategic rationale

Air Europa is one of the leading private airlines in Spain, operating scheduled domestic and international flights to 69 destinations, including European and long-haul routes to Latin America, the United States of America, the Caribbean and North Africa. In 2018, Air Europa generated revenue of €2.1 billion and an operating profit of €100 million. It carried 11.8 million passengers in 2018 and ended the year with a fleet of 66 aircraft.

The Board of IAG believes that the transaction would:

  • Increase the importance of IAG’s Madrid hub, transforming it into a true rival to Europe’s big four hubs: Amsterdam, Frankfurt, London Heathrow and Paris Charles De Gaulle;
  • Unlock further network growth opportunities and re-establish IAG’s South Atlantic leadership; and
  • Result in significant customer benefits through providing increased

The Air Europa brand will initially be retained and the company will remain as a standalone profit center within Iberia run by Iberia CEO Luis Gallego. The managements of IAG and Iberia anticipate opportunities to unlock value through the Acquisition across three key areas:

  • Integrating Air Europa into the existing Iberia hub structure at Madrid;
  • Creating commercial links between Air Europa and other IAG operating companies, in addition to inclusion into IAG’s joint businesses;
  • Integrating Air Europa onto the IAG platform of common services.

Synergies and financial impact

The Acquisition is expected to generate cost synergies across selling, general and administrative expenses, procurement, handling and distribution costs with full run-rate synergies to be achieved by 2025. IAG expects implementation costs to be phased over the same period.

In addition, the Acquisition is expected to generate significant revenue synergies by 2025, including:

  • Adding reciprocal intra-group codeshares across all connecting gateways;
  • Adjusting timings to maximise connectivity through the Madrid hub;
  • Aligning commercial policies and integrating sales forces in home markets;
  • Integrating Air Europa into existing IAG joint businesses; and
  • Integrating Air Europa into the Avios currency for loyalty.

The Acquisition is expected to be earnings accretive in the first full year following Completion and accretive to IAG’s return on invested capital within four years after Completion.

Financing and expected timetable

The Acquisition will be funded by external debt. After Completion, IAG’s net debt to EBITDA is expected to be 0.3 times higher as a result of the Acquisition compared to 1.2 times last reported at the end of Q3 2019.

Assuming satisfaction of all conditions to the Acquisition, Completion is expected to take place in 2H 2020.

IAG has agreed to pay Air Europa a break fee of €40 million in the event that the transaction fails to receive the necessary regulatory approvals and either party elects to terminate the transaction agreement.

The Acquisition constitutes a Class 2 transaction for the purposes of the UK Financial Conduct Authority’s Listing Rules and, as such, does not require IAG’s shareholders’ approval. The gross assets of Air Europa at 31 December 2018 were €901 million. The pre-tax profits attributable to Air Europa for the year ended 31 December 2018 were €67 million.

Steve Gunning

Chief Financial Officer

November 4, 2019

Air Europa aircraft photo gallery:

Air Europa Express is now operating its first Boeing 737-800

The first Boeing 737-800 operated by Air Europa Express

Air Europa Express has become a new operator of the Boeing 737-800. The pictured Boeing 737-85P EC-MPG is now being operated the lower cost carrier with the appropriate titles.

Air Europa Express (previously Aeronova) is a subsidiary of Globalia which is also the parent company of Air Europa but is a separate company.

Air Europa Express commenced operations on January 11, 2016 with two daily flights between Valencia and Madrid; and one daily flight between Valencia and Palma de Malorca.

Copyright Photo: Air Europa Express (2nd) Boeing 737-85P WL EC-MPG (msn 60586) FRA (Marcelo F. De Biasi). Image: 946238.

Air Europa Express aircraft slide show:

Etihad Airways forges a new partnership with Air Europa

Etihad Airways Airbus A380-861 A6-APE (msn 191) LHR (Rob Skinkis). Image: 943662.

Etihad Airways has made this announcement:

Etihad Guest, the loyalty program for Etihad Airways, has announced a new partnership with Air Europa, enhancing the benefits for its members by allowing them to earn and spend Etihad Guest Miles when flying with the Spanish carrier.

The partnership allows members to also accumulate miles on codeshare flights operated and marketed by Etihad Airways in partnership with Air Europa. In addition, Etihad Guest members can redeem miles for tickets across the Air Europa network.

The agreement provides for greater cooperation between the airlines’ frequent flyer programs, Etihad Guest and SUMA, enabling passengers to earn and redeem miles reciprocally. In both cases, the number of miles earned will depend upon the class of travel flown.

Air Europa currently flies across Europe including holiday resorts in the Canary and Balearic Islands as well as long-haul services to the Americas and the Caribbean.

Top Copyright Photo: Etihad Airways Airbus A380-861 A6-APE (msn 191) LHR (Rob Skinkis). Image: 943662.

Etihad Airways aircraft slide show: