22 AUGUST 2022
© 2022 Business Travel News Ltd.
International Airines Group (IAG) has taken a 20% stake in Spanish airline Air Europa after converting a loan, it was announced on the stock markets last Tuesday (16 August).
Under the then management of Willie Walsh in November 2019 IAG was initially in talks to acquire Air Europa, but scrapped the planned deal in December 2021 with Covid-19 problems cited. The essentially Spanish-based operation owns Aer Lingus, British Airways, Iberia, Level and Vueling. See BTN 11 November 2019 COMMENT: A Spanish step too far for Walsh?
With other parties showing an interest IAG came up with a new strategy last March. Under this plan it provided a €100m seven-year unsecured loan to Air Europa parent Globalia and agreed a period of exclusivity for one year on talks for the airline.
“IAG announces that it has exercised its option to exchange the Group's €100m seven-year unsecured loan to Globalia for a 20% equity stake in Air Europa”, the statement read.
Air Europa’s fleet is made up of 22 Boeing 787 Dreamliners and 20 Boeing 737-800 aircraft. Its Express regional unit also operates the Embraer E195.
See also New airlines' boss in this week's BTN.
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