Air France-KLM shows 'interest' in Spanish airline stake

SPANISH airline Air Europa’s owner Globalia said on Wednesday (Nov 27) Air France-KLM was interested in taking a stake in the carrier.

Business daily El Economista reported the Franco-Dutch group was considering taking a 20 per cent stake in Air Europa.

The cost of this operation would be “well above” the US$105 million airline giant IAG paid for a 20 per cent stake in Air Europa in 2022, the newspaper added.

“There is an interest, just as there is interest from other airlines and funds. Nothing is sealed,” a Globalia spokeswoman told AFP.

Air France-KLM said only that talks were under way with Air Europa on reinforcing their “commercial cooperation within the framework of the SkyTeam alliance.”

Air Europa, which has a fleet of around 50 aircraft, operates flights within Spain as well as from the country to cities in Europe and Latin America.

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IAG announces acquisition of Air Europa for 500 million euros

It transported 11.7 million passengers last year and posted sales of 2.76 billion euros (S$3.9 billion), an 18 per cent increase over 2022.

IAG, owner of British Airways and Spanish airline Iberia, had in February 2023 said it was to acquire Air Europa for 500 million euros from Globalia, pending regulatory approval.

But it dropped its bid after the European Commission in January opened an “in-depth investigation” into the proposed deal on concerns it would reduce competition on several routes. AFP