Spanish carriers Iberia and Air Europa are looking for an alternative after their recent failed merger. The latter was supposed to lead to the creation of one of the largest European airlines. Certainly the one with the most airline connections to Latin America. However, International Airlines Group (IAG) is not giving up: the international aviation group that controls, among others, British Airways and Iberia, yesterday turned to the Comisión Nacional del Mercado de Valores (CNMV) to unblock the negotiation with the Globalia group airline. 

The agreement between Iag and Globalia, signed in 2019 and amended in January 2021, committed Iberia to acquire all the shares of Air Europa, under penalty of compensation of 40 million euros. These days, International Airlines Group is negotiating compensation for the breach of the purchase agreement. However, both parties have intensified their efforts to reach the objective, looking for an alternative to the merger process that has vanished.

The aim could be achieved by involving a whole series of new protagonists. First of all the State, which through the fund of the state-owned industrial holding company (Sepi) has granted 475 million euros of aid to Air Europa. The second player is composed of financial institutions that have granted 140 million Euros to the airline through crowdfunding.

In short, Iag and Globalia will have to find a new balance with these new subjects. This is the only way to perfect the Iberia-Air Europa agreement, which in any case will have to be submitted again to Brussels.