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Tenders for acquisitions in Europe

From the privatization of the Portuguese Tap to the sale of Air Europa

The German air carrier Lufthansa and the Italian Ministry of Economy and Finance (MEF) are finalizing the final details for the privatization of the national carrier ITA Airways. In Europe, however, two other important matches are being played out: the privatisation of Tap Air Portugal and the sales of the Spanish Air Europa, which sees major players in the European sector in the field.

After more than three years of negotiations, International Airlines Group (IAG) is successfully concluding the agreement with the Globalia Group for the acquisition of 100% of the Spanish airline Air Europa, which last year signed an agreement with the state-owned Iberia (controlled by Iag) to proceed with the negotiation: thanks to a loan of 100 million Euros over seven years. The acquisition provides for the maintenance of the Air Europa brand, which will integrate operations with that of Iberia and will see its airport hub in Madrid-Barajas and the strengthening of flights between Europe and Latin America.

Meanwhile, the Portuguese government wants to privatize the national airline Tap Air Portugal by the end of 2023, keeping the airport hub in Lisbon. Competing for the takeover are the French-Dutch Air France-KLM and the German Lufthansa. Air France-KLM, after the agreement on ITA Airways has faded, must expand the perimeter of their business in Europe to remain competitive: therefore, entry into TAP is strategic, thanks to the profitable routes to Brazil and Africa. The French-Dutch could win, thanks to the fact that Air France has completed the repayment of state support and therefore has the green light from Brussels to invest in new acquisitions.

With the acquisition of the Spanish Air Europa, the Iag Group consolidates its presence in the European market thanks to the control of six airlines (British Airways, Iberia, Vueling, Aer Lingus, Level) based in three different countries. Equally Air France-KLM, which if awarded Tap Portugal would expand its presence in three states. The market of the Old Continent is increasingly similar to the American one, dominated by the four major airlines (American, Delta, United, Southwest) which share most of the traffic. We'll see how it turns out.

On the same topic see also the article published by AVIONEWS.

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AVIONEWS - World Aeronautical Press Agency