Sun. Nov 17th, 2019

IAG acquires Air Europa for 1,000 million euros


The IAG Group, to which Iberia belongs, has agreed with Globalia to buy Air Europa for 1,000 million euros, an operation that will be expected to close in the second half of 2020 and that will involve the union of the two largest Spanish airlines, reported Monday International Airlines Group The operation, which will be financed with external debt and whose amount is subject to adjustments based on the financial statements, will be paid in cash at the time of closing. IAG will pay 40 million euros in the event that the relevant regulatory authorizations are not obtained and if one of the parties decides to terminate the agreement.

In the presentation sent to the National Commission of the Stock Market, International Airlines Group (IAG) -formed by British Airways (BA), Iberia, Vueling and Aer Lingus- stressed that with this purchase its "hub" (operations center) from Madrid will be transformed "in a true rival for the four largest 'hubs' in Europe: Amsterdam, Frankfurt, London-Heathrow and Paris-Charles De Gaulle. "In addition, it will allow its repositioning as a market leader in Europe to Latin America and the Caribbean, as well as obtaining significant potential synergies in terms of costs and revenues Initially, Air Europa will maintain its brand and will be integrated as an autonomous revenue center in the structure of Iberia and under the direction of its CEO, Luis Gallego.

According to the same source, profit per share will increase already during the first full year and the return on invested capital will rise in the fourth year after closing, according to the same source. "The acquisition of Air Europa means adding a new competitive and profitable airline to IAG, making Madrid a leading European hub and allowing IAG to achieve the leadership of the South Atlantic, thus generating additional financial value for our shareholders," he said. the CEO of the Group, Willie Walsh. The executive has pointed out that they have a solid track record of successful acquisitions and that they are convinced that Air Europa represents a great strategic fit for the group. For the CEO of Globalia, Javier Hidalgo, the incorporation of Air Europa to IAG is a strengthening of the present and future of the company, which will maintain the line followed during the last years. "We are convinced that it will be a success for Air Europa to join a group like IAG, which has demonstrated during all these years its commitment to the development of the airlines that make them up and to the 'hub' of Madrid," said Hidalgo .

For its part, Gallego has stressed that the operation is of great strategic importance for the 'hub' of Madrid which, in recent years, "had 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 the routes from Europe to Latin America and the possibility of becoming a gateway between Asia and Latin America," he said. Galician. To justify the operation, IAG has pointed out that Air Europa is one of the leading private airlines in Spain, which operates regular national and international flights to 69 destinations, including European and long-distance routes to Latin America, the United States, the Caribbean and North Africa. In 2018, Air Europa invoiced 2,100 million euros, obtained an operating profit of 100 million and transported 11.8 million passengers with a fleet at the end of the year of 66 aircraft.

. (tagsToTranslate) larazon.es



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