This archive report was first published on 5 November 2019.
Published on November 5, 2019, British Airways is set to acquire Air Europa for $1.1 billion (approximately KSh113.3 billion). This acquisition aims to transform Madrid's airport into a major global aviation hub, competing with other prominent European airports such as London, Paris, and Frankfurt.
According to International Consolidated Airlines Group (IAG), Air Europa will retain its brand and operate as a standalone business. Iberia, a subsidiary of IAG, will oversee the entire acquisition process.
“Following this agreement, Madrid will be able to compete with other European hubs on equal terms. It will also have a better position on Europe to Latin America routes. There is also a possibility for it to become a gateway between Asia and Latin America,” said Luis Gallego, chief executive of Iberia.
The acquisition is expected to increase IAG's share of passengers flying between Europe and Latin America from 19% to 26%. The deal is anticipated to be completed by the second half of next year, as stated by IAG.
Air Europa is the third-largest Spanish airline, with its headquarters in Llucmajor, Spain, and its main hub at Adolfo Suárez Madrid–Barajas Airport. The airline operates flights to over 44 destinations across Spain, Europe, South America, North America, the Caribbean, and Morocco.
British Airways, listed on the London Stock Exchange, is the flag carrier airline of the United Kingdom and the second-largest airline in the UK, based on fleet size and passengers carried.
