IAGParent company that owns Iberia formalizes acquisition request Air Europa previously European Commission. As of now, “we have months of work ahead of us,” but the company hopes to close it as soon as possible in 2024. The airline submitted a “significantly larger” transfer offer to the competition than before. The previous process failed to convince community officials.
“HE ‘treatment’ package (Competitiveness measures) are quite ambitious. IAG/Iberia believes that the Commission will fully respond to any concerns it may have. Offer increased significantly carried out on the previous occasion to guarantee strong competition on all routes”.
It also underlines that “a broader approach is recommended.”those looking for a solution (I am interested in assets and rights for sale).” And he adds this “Many companies showed great interest in receiving the award”“This shows the importance and feasibility of the package.”
Last February, more than three years and three months after the initial acquisition announcement, Iberia closed the acquisition of Air Europa with the Hidalgo family. total of 500 million eurosAs announced by both companies after the market closed. The deal involved the IAG group buying the remaining 80% of Air Europa for 400 million euros, after paying 100 million for 20% of the company in August.
CEO of IAG, Luis GallegoHe emphasized that “this agreement will increase Madrid’s competitiveness relative to other centers in Europe, as well as benefit consumers and the Spanish economy in general.”
Iberia sources emphasize that “this operation is good for Spain”: It will increase the connectivity and competitiveness of Madrid’s European hub, create quality employment, help develop tourism and increase economic growth.“.
Increasing the routes
In the airline’s view, the benefits for consumers will also come in the form of flexibility for passengers through an increase in routes and frequencies and optimization of flight schedules. Another variable is that it will facilitate at least 500 new combinations of departures and destinations, and particularly routes from Spain to Asia.
in terms of To the center of Madrid-Barajas In terms of Europe’s competitiveness, they emphasize that “the operation will transform Madrid Barajas and increase air competition both within Europe and between Europe and the rest of the world.” In this way, it will be able to compete with the major ‘hubs’ of the European Union (EU) such as Paris, Munich, Frankfurt and Amsterdam (all with a single reference airline).
Iberia and Air Europa will be together A similar quota to the hubs of major airlines in Europe”. It will be on par with Air France in Paris and remain lower than Lufthansa in Munich or KLM in Amsterdam. The merger will increase Madrid-Barajas traffic by at least 1.6 million passengers per year, as scale allows more connections and increases additional demand.
This integration is for Spain ‘The center of Madrid’ According to the same sources, the stronger one will position the country better in the global economy. It is estimated that the operation will create Between 1,250 and 1,800 direct jobsThere was an increase of nearly 30 million euros in the annual revenue of Madrid airport and an increase of 16,000 tons in cargo traffic. They say the operation will also make Air Europa a more sustainable company.