MIAMI – International Airlines Group (IAG), the owner of British Airways (BA) and Iberia (IB), is set to buy Air Europa (UX) at a reduced price.
The group is now set to spend about EUR€500 million on the Spanish budget carrier instead of the original EUR€1 billion originally offered. With the onset of the COVID-19 pandemic, IAG worked to continually reduce the price and a deal has finally been reached.
A Strong South America Presence
Transatlantic flights, a crucial portion of IAG income, especially at BA, have been hit hard this year, thus dominating it in a post pandemic would help the group recover.
IAG itself says the takeover will provide it a strong South America presence while allowing for the domination of the group at Madrid Bajaras International Airport (MAD).
Many say that a strong focus in Spain represents the increasing influence of the Spanish arm of IAG, it will be interesting to see how air fares react to this takeover.
Featured image: Air Europa Boeing 787-8 reg: EC-MMX Photo: © Max Taubman – @maximumaviation