In November 2019, International Airlines Group (IAG) agreed to buy Spanish-owned Air Europa for one billion euros (US$1.13 billion), subject to European regulatory approval. In March this year IAG, which also owns Spanish carriers Iberia and low-cost carrier Vueling, agreed to offload a number of routes to fellow Spanish carrier Volotea which would reinforce competition on overlap routes that might otherwise attract European regulatory objections.
However, in light of the impact the COVID-19 pandemic has had on the commercial aviation industry, IAG is now looking to renegotiate the purchase price with Globalia, the Spanish tour operator which owns Air Europa. Currently, airline values are difficult to assess and the value of IAG, which also owns Aer Lingus, British Airways, IAG Cargo, LEVEL, Level Europe and Avios Group, has fallen by over 60 per cent this year.
