Iberia has been trying to finalize the purchase of Air Europa for some time, one of its main competitors in Spain, and now it seems that this deal is going ahead.
The deal, previously listed at €1 billion, will now be closed at half, that is, €500 million. The acquisition value was decreased due to the Covid-19 crisis, and how it affected the aviation market throughout 2020.
In addition, Brexit may also result in a decrease in Air Europa's market value, even if the crisis has not affected the company's infrastructure.
Payment, in turn, should only take place in 2026. Therefore, Globalia, the current owner of Air Europa, should only receive for the sale of the airline in the future, after the payment of a loan by the company.
The purchase would bring full control of Iberia over Air Europa, and make Madrid the main hub of Spain in the IAG Group. But the purchase still depends on the approval of regulatory bodies in Spain.
So far, there are no signs that the company and the Air Europa brand will disappear, thus preserving all the company's employees and aircraft.
Air Europa connects Spain to Europe, Latin America, North America and Africa with a fleet of 66 aircraft, and carried nearly 12 million engers in 2019.
