Air France-KLM reportedly offers millions for controlling stake in Air Europa. In the already intense battle for the Spanish airline, Air France – KLM has reportedly made a significant move by offering €300 million for a controlling stake in Air Europa.
According to the Spanish newspaper El Confidencial, Air France-KLM has placed a €300 million cash bid, aiming to acquire a 51% controlling stake from the Globalia Group, owned by the Spanish Hidalgo family. Additionally, Air France-KLM is willing to assume Air Europa’s outstanding COVID-related debts to the Spanish government.
Air France-KLM’s Move Is no surprise. In an era of major consolidation in the European airline industry, Air France-KLM’s latest bid is far from unexpected. CEO Benjamin Smith had already expressed interest in Air Europa in early March. Last year, the Franco-Dutch group also acquired a 19.9% stake in SAS Scandinavian Airlines. Additionally, Smith was seen alongside French President Emmanuel Macron in Lisbon this past February, possibly discussing TAP Air Portugal.
Competition
Air France-KLM has entered the race late. For a long time, British IAG (the parent company of British Airways, Aer Lingus, and Iberia) appeared to be the frontrunner for Air Europa. However, that deal collapsed in August last year, as European competition authorities ruled that it would harm market competition in Spain.
Following IAG’s failed attempt, the Lufthansa Group has stepped in. After successfully acquiring ITA Airways, the German airline group set its sights on Air Europa. Lufthansa has offered €240 million for a 25% stake, aiming to strengthen its position in the South American market, where it currently has a relatively weak presence.
Hidalgo Family Divided Over Offers. According to El Confidencial, the Hidalgo family is divided on which offer to accept. Meanwhile, Lufthansa has already strengthened its ties with Air Europa. Brussels Airlines, a Lufthansa subsidiary, has arranged to lease a Boeing 787-9 from Air Europa starting in February 2025 for its Brussels–New York route.”