By John Smith • 20 December 2020 • 11:59
Air Europa talks taking off again
Credit: Globalia press centre
SPECIALIST aircraft publications around the world have pounced on information revealed by El Confidencial that the proposed takeover of Air Europa by Iberian and its parent IAG is to go ahead but under quite different terms than originally expected.
When the two parties were first in discussion, the Mallorcan based Globalia company, owner of Air Europa agreed ‘in principle’ terms of €1 billion for the airline but with the onset of the pandemic, the airline industry took a huge hit and the deal was put on hold.
Since that time, Air Europa has received a loan of €475 million from the Spanish Government and according to the El Confidencial report (which has not been commented on by IAG) it suggests that a new offer has been made in the sum of €500 million which would not be paid until 2026.
This new calculation is based on the fact that the Spanish Government loan is due to be repaid by that date and as such, IAG wants that cleared before making any payment and clearly in its opinion, Air Europa which has suffered financially in the past 12 months is just not worth the original amount.
The good news for Mallorca and Palma Airport is that if a deal can be secured for Spain’s third largest airline then access for tourists and a reasonable number of jobs will be guaranteed over the long-term without regular financial crises occurring.
Thank you for taking the time to read this news article “It appears that IAG will make a new offer for Air Europa”.
GLOBAL CONSULTING MALLORCA
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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.
Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.
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