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Air Europa, Spain's third-largest airline, is currently seeking new investment and partnerships to address mounting debt and restore its financial health. As of now, no final decisions have been made about the future of Air Europa, but both Lufthansa and Air France are interested in becoming major stakeholders in the struggling carrier.
According to Barrons, citing a French press release by Agence France-Presse, "Air France-KLM has proposed 300 million euros ($327 million) to acquire 51 percent of Air Europa from its main shareholder, the tourism group Globalia, and pledged to take on the debt it incurred with the Spanish state during the coronavirus crisis," said El Confidencial. "The Hidalgo family that controls Globalia would see its stake tumble to 29 percent, while IAG, the parent company of British Airways and Iberia, would hold 20 percent," it added.
On the other hand, "Lufthansa has offered to plough 240 million euros into the Spanish company via a capital increase of 25 percent," according to El Confidencial. This move would allow Lufthansa to help pay off state- contracted debt.
