IAG, the parent company behind Iberia, formalizes its acquisition approach for Air Europa after securing the European Commission’s review. At present, the group acknowledges that there are months of work ahead, aiming to finalize the deal as quickly as possible in 2024. A new, significantly larger transfer proposal has been put forward, surpassing previous bids, though the prior process did not persuade regional officials.
The package of competitiveness measures accompanying the offer is described as ambitious. IAG and Iberia trust that the Commission will address any concerns fully. The latest offer builds on the earlier attempt, ensuring robust competition across all routes.
The company notes that a broader approach is advisable, particularly for those seeking assets and rights for sale. It adds that many firms expressed strong interest in the award, underscoring the package’s importance and feasibility.
In February, more than three years and three months after the initial announcement, Iberia completed the acquisition of Air Europa with the Hidalgo family for a total of 500 million euros, as announced after markets closed. The deal sees IAG acquire the remaining 80% of Air Europa for 400 million euros, following a payment of 100 million for a 20% stake in August.
The IAG chief executive officer emphasized that the agreement will boost Madrid’s competitiveness within Europe and bring broader benefits to consumers and the Spanish economy as a whole.
Iberia sources highlight that the operation is favorable for Spain. It will enhance connectivity and competitiveness at Madrid’s European hub, create high-quality employment, support tourism development, and bolster economic growth.
Increasing the routes
From the airline’s perspective, consumers will gain from greater flexibility through an expanded route network, higher flight frequencies, and optimized schedules. The plan anticipates at least 500 new departure and arrival combinations, with particular emphasis on routes from Spain to Asia.
With Madrid Barajas as the central hub, Europe’s competitive landscape could shift toward stronger intra-European competition and improved links to the rest of the world. The vision positions Madrid Barajas to contend with major EU hubs such as Paris, Munich, Frankfurt, and Amsterdam, each historically served by a dominant carrier.
The Iberia and Air Europa consolidation will align Madrid Barajas with other European hubs and enable Madrid to reach a similar scale to the leading centers. The merger is projected to raise annual passenger traffic at Madrid Barajas by at least 1.6 million, as the larger network supports more connections and drives additional demand.
The integration is described as a strengthening of Spain’s role at the center of Europe’s air transport network. Projections indicate the operation will create between 1,250 and 1,800 direct jobs, contribute a notable rise in yearly airport revenue, and increase cargo traffic. The parties also assert that Air Europa will operate with enhanced sustainability after the tie-up.