The news became official on 4 November : IAG will add Air Europa to an already very solid airline group. After bringing together players such as Vueling, Aer Lingus and above all Iberiathe parent company of British Airways intends to include this new catch from second half of 2020. The Air Europa brand should - at least initially - be maintained. The transaction, valued at 1 billion eurosHowever, the agreement must still be approved by the relevant authorities. If not, IAG undertakes to pay Air Europa 40 million euros. As for the synergies generated with Iberia, which should bear fruit by 2025 according to IAG's flight plan.
Madrid airport and the Europe-South America axis are at the heart of this new strategic manoeuvre. IAG's objective is clear: to shake up the hierarchy of European airports. " Position the Madrid hub as a genuine competitor to Europe's four biggest hubs: Amsterdam, Frankfurt, London Heathrow and Paris Charles de Gaulle: Amsterdam, Frankfurt, London Heathrow and Paris Charles De Gaulle "This is the goal set out in the press release published on Monday. " This is of strategic importance for the Madrid hub, which in recent years has fallen behind other European hubs." notes Luis Gallego, CEO of Iberia. Following this agreement, Madrid will be able to compete with other European hubs on an equal footing, with a better position on Europe-Latin America routes and the possibility of becoming a gateway between Asia and Latin America. As for Willie Walsh, IAG's Chief Executive, he sets out his ambition clearly: " to enable IAG to become the leader in the South Atlantic"..
The collateral victim of this announcement could well be the group Air France KLMwho has been working since last April on a joint venture project with... Air Europa. Last July, the group's management stated: " The JV agreement between the Air France - KLM Group and Air Europa was signed by both parties on 10 April 2019 and is pending regulatory approval from the relevant competition authorities in Europe and South America. These processes always take several months, especially as this JV involves several different regulatory authorities" . IAG's announcement nips this joint venture in the bud, and further shakes things up in the airline sector. alliances. Like Air France, Air Europa is a member of the Skyteam alliance: but for how much longer?
