International Airlines Group pulls out of Air Europa deal

International Airlines Group (IAG) has pulled out of a deal to acquire Air Europa.

The aviation giant originally agreed to purchase the carrier from owners, Globalia, for €1 billion in late 2019.

IAG had planned to acquire the entire issued share capital of the Spain-based airline through its Iberia subsidiary.

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The price was cut €500 million earlier this year, in the wake of the Covid-19 pandemic, while the Competition & Markets Authority (CMA) also said it would examine the transaction.

IAG reportedly offered to give up 13 short and medium-haul routes and two long-haul routes at Madrid and Barcelona airports in response to competition concerns.

However, this may not have been enough to assuage the concerns of regulators.

A brief statement today, however, said the deal was off.

“A further update will be made in the future, as appropriate,” IAG added.

1 thought on “International Airlines Group pulls out of Air Europa deal”

  1. International Cons Airlines Group Terminates Contract to Buy Air Europa. The companies have also reached an understanding to evaluate alternative structures by the end of January.

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