June 24, 2021

The president of Iberia defends that the purchase of Air Europa will be beneficial for the customer – La Provincia

The executive president of Iberia, Luis Gallego, said Wednesday that the company is "convinced" thatthe purchase of Air Europa is beneficial for the customer in the absence of the Competition analysis.

In this way, Gallego was referringto the doubts generated about the possible loss of connectivity of the archipelagos of the Canary Islands and the Balearic Islands.

He has also ensured that the airlineAir Europe-which the IAG group has bought for 1,000 million- "he was marrying "with Air France KLM, since they had closed a joint business agreement and" normally those ties are going to be more. "

During his speech in the 'Servimedia Dialogues' on the challenges oftourism, Gallego has admitted that the approval of the purchase of Air Europa by IAGIt could last between 18 months and two years,although from the company they plan that the operation can be carried out at the end of the second half of 2020.

"We have a purchase agreement that is subject to the approval of the Competition authorities, a process that is not clear, since it can last 18 months or reach two years," said Gallego. According to the manager, this operation has been carried out because, in his opinion,"is the best for Spain and forhubfrom Madrid",in front of other big European hubs like the one in Paris or the one in London.

"We are convinced that having an operator that can compete from you to you with other European hubs will give the possibility offly to destinations that were impossible until now ",He has remarked.

Gallego has lamented that, "from the point of view of the airlines" is being a complicated year, withthe bankruptcy of more than 15 European airlines because of an "increasingly competitive" marketand because of the international instability caused by the trade war between the United States and China or the conflicts in Latin America, among other events.

"The consolidation movement in the airlines is happening because they cannot support this cycle that seems to be beginning to decline, as usually happens in aviation every certain period of time," he explained.

For its part,the executive vice president and CEO of Meliá, Gabriel Escarrer,He has clarified that, rather than a cycle change, the coordinates and factors are changed. In addition, he has assured that, after seeing the bankruptcy of 15 airlines and tour operators, "it is clear that this is going on a chain and that the hotel sector will come sooner or later."

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