Iberia opens up to other acquisitions if it doesn’t sign a deal with Air Europa within three months

Holding company IAG, which groups Iberia, British Airways, Vueling, Aer Lingus and Level, became a 20% shareholder of Air Europa after capitalizing a €100 million participant loan last summer. million and that allows negotiate exclusively for the acquisition of a competitor the right to reject other possible purchase offers until the end of next March and for a period of three years.

Iberia’s goal continues Absorb Air Europa and negotiations are still open to achieve it With the Hidalgo family, the largest shareholders of the Globalia tourism group, and the airline itself. IAG’s goal remains to close a deal before the exclusivity period expires in three months, and to do so “without major changes” to the €500m price pre-agreed at the airline’s final valuation (which is what Iberian president Javier Sánchez-Prieto said in a press release). At the meeting, he stressed that more than 600 million debts he carries should be added.

But Iberia is also open to looking for other opportunities If it fails to complete an agreement with Air Europa. “It’s great if we have an agreement before March. But if we don’t reach an agreement, we will make public our strategy for the future, whether it tries to continue the operation or not. look for other alternatives”, Sánchez-Prieto warned. Led by Luis Gallego, the former president of Iberia, IAG continues its goal of gradually incorporating companies if they add value, and pursues opportunities in the sector.

At the end of 2019, Iberia and Air Europa agreed to buy for 1,000 million euros, and only a year later and in the midst of the pandemic, the price was reduced to 500 million euros. “There is no fundamental difference in the terms of previous agreements with respect to expected future cash flows and accumulated debt. Large differences in the agreed price should not be expected Regarding the alleged Hidalgo family’s alleged increase in the purchase price in previous negotiations, I would not have expected big surprises,” said the head of Iberia.

The operation has been extensively redesigned, the parties have given themselves more time after several shocks that threatened to derail the acquisition, and both companies are currently continuing to negotiate necessary concessions to overcome the European Commission’s skepticism in the Competition area. both groups.

precovid advantage in 2024

Iberia sees 2022 as a year of recovery, with the reopening of routes and the increase in seat supply after the collapse due to the pandemic, a significant return on investment for fleet renewal… Wait for 2023. to be the country where, thanks to its growth spurt in the United States and Latin America alone, it has managed to completely exceed pre-pandemic flight and destination offers. and mark targeted to be 2024 when the airline manages to recover margins and results reached in pre-covid 2019 (with 497 million operation results).

“We are clear that we will succeed in 2023” restoring capacity before covid. However, achieving pre-pandemic results is more complicated due to the inflationary context,” stressed Sánchez-Prieto. “We anticipate that our suppliers’ costs will decrease, labor costs will increase after new agreements and fuel oil will not decrease, at most, thanks to our guarantee contracts. 2023 will be a year of transition in this field,” he said.

Negotiate an ERE in 2023

After the group’s cabin crew signed the last of its collective agreements and the company reached agreements on salary increases for all worker groups, Iberia management confirmed that it is preparing to start negotiations with the unions in early 2023. ultimate downsizing employment regulation file (ERE).

“We are in no rush. For organizational reasons, there will be an ERE to adapt resources to the outcome of next year’s competitions, to capacity … We will sit down for negotiation in January or maybe March”, explained the head of Iberia. “There won’t be an ERE like in Iberia of the past, where there were thousands of workers. It will be an adjustment and we will agree on it next year.”

expansion of the fleet

Iberia continues to carry out the renewal of its aircraft fleet. The company has received thirteen new aircraft this year, including six A320neo models and seven A350Next. new more efficient version (1 ton lighter and therefore less consuming and has fewer polluting emissions) Airbus model, of which the Spanish airline was the first customer.

Iberia has set a new product standard for its customers on these A350s, with improvements in business class and premium tourist class. The airline plans to have 20 A350 aircraft by 2024, eight of which will have the new configuration in the passenger cabin.