BA owner looks to revive interest in Air Europa

Airline group IAG is looking for ways to revive its deal to purchase Air Europa after loaning €100 million to the Spanish carrier’s parent company Globalia.
IAG, which owns British Airways, Iberia, Vueling and Aer Lingus, pulled out of its original deal to buy Air Europa in December 2021.
But now IAG has agreed a €100 million seven-year unsecured loan to Globalia, which gives IAG a one-year “exclusivity” period to negotiate a new agreement for Air Europa.
The agreement provides for a one-year period of exclusivity while discussions take place.
IAG added that “this is accompanied by a right to match any third party offer for the airline in the next three years, together with a right to exit alongside Globalia should it sell Air Europa at any time in the future”.
The group said it maintained an interest in developing Madrid as a hub and committed to analysing “alternative arrangements” with Globalia.
IAG chief executive Luis Gallego said: “Since we started negotiations, the world has changed.
“This agreement will give us time to evaluate with exclusivity alternative structures that may be of interest to both companies and offer significant benefits for their customers, employees and shareholders.”
-B