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Air France-KLM is considering acquiring up to 20% of Air Europa, following the collapse of a previous acquisition attempt by the International Airlines Group (IAG). IAG, which owns British Airways and Iberia, had initially sought to acquire Spain's third-largest airline but withdrew due to regulatory challenges. Despite this, IAG retains a 20% stake in Air Europa.
The Hidalgo family, owners of 80% of Air Europa through Globalia, has reportedly been negotiating with Air France-KLM for several weeks. Globalia confirmed Air France-KLM's interest in a statement to Reuters. The potential deal could surpass the $100 million paid by IAG for its stake in August 2022.
Air Europa is seeking capital expansion avenues to repay debt. In May 2020, it secured a €141 million loan from banks and the Official Credit Institute (ICO), with plans to repay it fully by August 2025. The airline improved its financial results by 18% in 2023, achieving a net income of €165 million.
