IAG plans to make Madrid a key European hub after buying Air Europa
Published on Monday, November 4, 2019
British Airways’ parent IAG plans to establish Madrid as a true rival to Heathrow, Amsterdam, Frankfurt, and Paris Charles De Gaulle following its purchase of Air Europa.
IAG, which already owns Iberia, has bought the Spanish airline for €1 billion.
The Air Europa brand will initially be retained and the company will remain as a standalone profit centre within Iberia, run by Iberia chief executive Luis Gallego.
“This is of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs,” said Gallego.
“Following this agreement, Madrid will be able to compete with other European hubs on equal terms with a better position on Europe to Latin America routes and the possibility to become a gateway between Asia and Latin America.”
Completion is expected to take place in the second half of 2020 following receipt of relevant approvals.
IAG chief executive Willie Walsh said: “Acquiring Air Europa would add a new competitive, cost effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership, therefore generating additional financial value for our shareholders.
“IAG has a strong track record of successful acquisitions, most recently with the acquisition of Aer Lingus in 2015 and we are convinced Air Europa presents a strong strategic fit for the group.”
Air Europa flies to 69 destinations, including European and long-haul routes to Latin America, the United States of America, the Caribbean and North Africa.