International Consolidated Airlines Group (IAG) and Globalia have signed a definitive transaction agreement 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 Líneas Aéreas, S.A.U (Air Europa) for €1 billion to be satisfied in cash at Completion and subject to a closing accounts adjustment.
Air Europa, based on Mallorca, Spain, 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 Air Europa brand will initially be retained and the company will remain as a standalone profit centre 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 and integrating Air Europa onto the IAG platform of common services. (€1.00 = US$1.10 at time of publication.)