Parent company of Aer Lingus and British Airways acquires Spanish carrier for about $1.1 billion >>
IAG, the parent company of Aer Lingus and British Airways, will acquire Spain’s Air Europa for about $1.1 billion in an effort to boost its presence on routes to Latin America and the Caribbean. Air Europa serves 69 destinations, including long-haul routes to the Americas and the Caribbean. It had a fleet of 66 aircraft at the end of 2018.
Air Europa will maintain its brand initially as it is integrated into the existing IAG hub at Madrid. Luis Gallego, CEO of Iberia, said the purchase was of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs. He said Madrid has the potential to serve as a gateway between Asia and Latin America. Willie Walsh, CEO of IAG, said the acquisition would add a new competitive cost-effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership. IAG also owns carriers Iberia, Level and Vueling.