three years and almost four months After the first purchase announcement, Iberia closed its acquisition of Air Europa on Thursday with Hidalgo family total 500 million euros. The deal includes the purchase IAG groupThe remaining 80% stake in Air Europa – after paying 100 million for 20% of the company in August – is also integrated into the Spanish airline. 400 million euros. In the absence of at least one one and half year The agreement between Iberia and Air Europa will create a new aviation giant, after obtaining permission from the European Commission for its realization and if there is no obstacle in front of it. at European level. These are some keys your operation.
More power for Iberia
According to pre-pandemic figures, this operation fifth major airline European just behind KLM in terms of the number of long-haul aircraft. Total, Iberia contributes about 150 aircraftadded by others 50 from Air Europa to create synergy between the two companies. “It’s not like a banking integration with a lot of branches. There isn’t a lot of people in this union,” said the company’s current CEO. Javier Sanchez Prieto. The task for the company to do is that offered by the European competition authorities in the form of ‘remedies’.
When Competence his approval, which will be necessary to see are these obligationsbut what is certain is that The Air Europa brand will remain as they already do, another one in the Iberia portfolio Vueling and Level, so continuity will be given to the poster as a way of distinguishing its matrix. In this way, Iberia will have a greater presence in Spain. With Aena 2022 datagroup Iberia-Vueling-Air Europe It would add about 81.9 million travelers out of a total of 243.6 million users. Ryanair is currently the airline with the most passengers in Spain, with 51.6 million last year, following it. flying (40.3 million), Iberia (17.8 million), Air Europe (14.3 million) and Iberian Express (10.3 million).
Support Madrid’s leadership
“This deal Madrid center compete equal conditions with other European centers and to consolidate its position in the South Atlantic,” the IAG chairman revealed this Thursday, Luis GallegoIn a statement released by the company to confirm the operation. Madrid It’s a big airport but what went lose position with regard to major European ‘centres’, both in terms of size and number of flights, destinations and passengers. According to pre-pandemic figures, 20 largest airports in EuropeMadrid ranks 19th in terms of destinations offered and top 10 airports in ninth place. countries has been served.
Iberia is also in aviation, more than individual airlines, airports and large groups compete and hence his interest in improving efficiency at this airport he aspires to be. The gateway to Europe from Latin America and the Caribbean. However Joint share of Air Europa and IAGWith pre-pandemic data, it was below the flag carriers of the four main European airports with 39%. Paris Charles de Gaulle, Frankfurt or Amsterdam.
more offers
“Operation a significant potential for synergies and a lot important advantages for our customers” Discloses the company in an internal note. Increasing opportunities stand out among the advantages. choiceimprovement programs And frequencies –like the Air Shuttle between Iberia and Vueling, or the Madrid-London flight between Iberia and British Airways– but also more destinations And direct links In addition to including new customers, currently non-existent Loyalty programs.
Air Europe very well located Latin America and the Caribbeanare the two main markets that Iberia wishes to promote in its portfolio. Founded by the Hidalgo family, the company has 29 destinations in the Caribbean and 21 in Latin America, such as San Pedro Sula in Honduras or Managua in Nicaragua. In addition, this integration, according to the company, increase other major markets as they are Asia and Middle Eastthe presence of Southern Europe in general so far, testimony.
save tourism
Iberia Also, this purchase tourism recovery Given the driving impact of this sector on national GDP, it is in the wake of the coronavirus pandemic that has paralyzed travel and the economy as a whole. The airline also hopes that this integration will serve to “walk in a straight line”. “The new model of quality tourism”less dependent Traditional markets in Europe, well positioned. But also a tourism incentive with more seasonally adjusted and higher tourist spending the creation of more stable employment as a result of this distribution towards other areas such as asia or middle east where tourists have much less focused consumption patterns in the sun and beach and during the summer season.