International Airlines Group (IAG) has grown its stake in Air Europa through the Iberia-led holding company Iberia and its financial arm. The move comes as IAG exercises an option tied to a €100 million loan agreed with Globalia last spring and formalized in the middle of the year. The loan covers seven years and gives IAG the option to convert part of Globalia’s investment into equity, effectively increasing its influence in Air Europa while Globalia would remain the controlling shareholder.
The strategic decision reinforces the Globalia project, with the Hidalgo family’s group continuing as the majority owner of Air Europa. This outcome is highlighted in a statement that underscores the intention to strengthen the airline’s development under Globalia’s leadership, even as negotiations with other parties unfold.
IAG’s leadership, headed by president Luis Gallego, has previously signaled ongoing discussions with potential buyers for Air Europa. The broader IAG portfolio includes Iberia, British Airways, Vueling, Aer Lingus, and Level. The latest agreement grants a one-year exclusivity window for negotiations and a right to match any third-party offer during the next three years, while allowing Globalia to access a €100 million unsecured loan over seven years with the option to redeem up to a 20% stake in Air Europa’s capital as the deal matures.
The planned acquisition by IAG was originally valued at €1 billion in late 2019. The onset of the global pandemic and the ensuing downturn in air travel forced a reassessment, with Air Europa requiring state support and additional financing. A restructuring in early 2023 revised the agreed price downward, reflecting a more cautious outlook for the aviation sector and the ongoing recovery process. Subsequent year-end negotiations laid groundwork for a new framework under which Iberia would step back into a more active role in the airline’s strategy while safeguarding Globalia’s control during the transition.
At the close of the previous year, Iberia contributed a portion of €75 million to support Hidalgo’s group as it renegotiated terms with lenders and partners. As Air Europa contemplates sale, talks with multiple potential buyers continue, with regulatory clearance from the European Commission anticipated as part of the review process for any new agreement.
In the corporate leadership arena, a recent change added Jesús Nuño de la Rosa as Air Europa’s chief executive officer. The executive, known for his prior leadership at Viajes El Corte Inglés, succeeds Valentín Lago, who had been at the helm following the airline’s rescue and subsequent integration efforts. The transition occurred following a mutual agreement between Air Europa and Sepi, signaling a shift in leadership that was not welcomed by the Hidalgo family in some circles. The new appointment is aimed at guiding Air Europa through a period of potential strategic redirection as negotiations unfold for the airline’s future ownership structure.
The evolving ownership dynamics reflect a broader pattern in the European aviation market, where strategic investors balance asset stability with growth ambitions. The combination of strategic financing, potential equity adjustments, and executive realignment illustrates how Air Europa sits at a crossroads—poised to leverage Globalia’s operational knowledge while benefiting from IAG’s network and scale through an enlarged, though still nuanced, ownership arrangement. As discussions continue, stakeholders expect a careful negotiation process to address competition concerns and align with European regulatory expectations. The situation remains fluid, with market observers watching for the next milestone in the evolving relationship between IAG, Globalia, and Air Europa [Source: corporate statements and industry updates].