Air France-KLM has submitted a €300 million offer to acquire a 51% stake in Spanish airline Air Europa, intensifying competition in the European aviation sector. The bid, first reported by El Confidencial, would grant the Franco-Dutch airline group a controlling interest in Air Europa, currently owned by Spanish tourism giant Globalia.
Strategic move to expand market presence
The acquisition is part of Air France-KLM’s strategy to strengthen its position in the Spanish market and expand its long-haul connections, particularly in Latin America. If successful, the deal would also see Air France-KLM assume responsibility for Air Europa’s €475 million debt to the Spanish government.
The move comes amid increased interest in Air Europa, with German airline group Lufthansa also reportedly in discussions over a potential stake. According to sources, Lufthansa has offered €240 million for a 25% share in the Spanish carrier, making the deal a potential bidding war between two of Europe’s largest airline groups.
Regulatory and competitive challenges
Air Europa, which operates flights within Spain and to major European and Latin American destinations, has been at the centre of takeover talks for several years. International Airlines Group (IAG), the parent company of British Airways and Iberia, had previously attempted to acquire Air Europa but abandoned the deal in 2023 due to regulatory concerns.
Should Air France-KLM’s bid proceed, the acquisition would be subject to approval from European competition authorities. Regulatory scrutiny is expected, given the potential impact on market competition, particularly on transatlantic routes and intra-European travel.
No comments
Both Air France-KLM and Lufthansa have declined to comment on the ongoing negotiations. Globalia, the majority owner of Air Europa, has also not issued a statement regarding the latest bid.
Industry analysts believe that acquiring Air Europa would be a significant boost for Air France-KLM’s network, particularly in connecting European passengers to Latin American markets. However, the deal’s success will depend on negotiations with Globalia and regulatory clearances.
