The International Airlines Group (IAG), yesterday, signed an agreement to purchase Spanish carrier, Air Europa, for €1 billion (N401 billion).
The deal was announced by the Group, Tuesday, and if the relevant approvals go ahead, this would be the group’s third Spanish airline behind Iberia and Vueling.
The merger and acquisition, again underscore the popular argument that no airline can survive in isolation in the highly competitive air travel industry.
IAG was founded in 2011, by the merger of British Airways and Iberia. Since then, other airlines have joined or been founded by the Group, which now make up five large airlines. This will become six should everything go as planned with the acquisition of Air Europa.
The new deal will see one of Europe’s large aviation groups becoming slightly larger. One of IAG’s wholly-owned subsidiaries, Iberia, is set to acquire the airline.
Initially, following completion of the deal, Air Europa will retain its branding. While the airline is being purchased by Iberia, it will maintain a standalone profit centre. The purchase of Air Europa will allow IAG to focus on its Spanish operations, particularly those in Madrid.