Air France-KLM Group is reportedly in negotiations to acquire up to a 20% stake in Spanish airline Air Europa. This development follows the collapse of British Airways parent company IAG's attempt to acquire Air Europa due to regulatory opposition. The proposed deal is valued at over 100 million euros (approximately $105 million) and does not require approval from EU regulators. However, the source of this information was not disclosed.
An Air France spokesperson declined to comment on the potential equity acquisition but confirmed that discussions on "commercial cooperation" with Air Europa are ongoing. Earlier this year, IAG, which owns British Airways and Spain's Iberia, abandoned its acquisition bid for Air Europa for the second time. The decision came after EU officials refused to make concessions necessary for the deal to proceed.
The main contention was the EU regulators' skepticism regarding IAG's commitment to open certain short and long-haul routes to competitors, which was intended to alleviate anti-competitive concerns.
