Madrid-based Air Europa joined the SkyTeam Alliance including SkyTeam Cargo, on 04SEP07 – a pact led by Delta, Air France-KLM and China Eastern. Now the Spanish carrier could become a full member of the Air France-KLM Group should the management of its majority owner, the Spanish Globalia Group (80%), approve the sale of the airline. There is some evidence for this, after the planned merger with IAG involving British Airways and Iberia turned to dust due to strict conditions imposed by the EU competition authorities. Hence, Air Europa is on the buyers’ market.
Market analysts approached by CargoForwarder Global agree that Air France-KLM would be a suitable partner for Air Europa against the backdrop of the current wave of consolidation in European air traffic. The Franco-Dutch carrier is not yet represented on the Iberian Peninsula, and lost the race for the planned entry into the Italian ITA, (supported at the time by Delta Air Lines), to Lufthansa. With Air Europa, Air France-KLM could therefore fill a gap in its southern European network which includes many transatlantic connections from Spain to the Caribbean region and 15+ destinations in Latin America. It would create a counterweight to the concentrated market power of IAG members, Iberia and Vueling, in south-western Europe. This also applies to the air freight business, although Air Europa’s route network primarily comprises tourist destinations, especially in the Caribbean Islands, which are rather of little attraction for air freight.
Intra-Brazilian traffic rights
In 2018, the company decided to set up a separate division for air freight transportation after this business had been managed by GSAs for many years. One year later, the airline obtained a license from the Brazilian regulator, allowing it to operate flights on domestic routes. Should the Air France-KLM Group submit a tender to take over Air Europa, the price is likely to be similar to the EUR 1 billion offered originally by the IAG Group. However, the 20% stake that IAG has held in the Spanish airline since AUG22, would also have to be acquired. It was a loan to support covid-hit Air Europa to get back on its feet again after the pandemic forced commercial aviation to stay on the ground. Later, this loan was converted into a 20% in shareholding. In bold financial terms, this value is likely to be 200 million euros, which should up the total price for the Spanish airline to around 1.2 billion euros. Irrespective of the expected ownership changes, Air Europa is continuing to expand its own fleet. Last week, the airline put another B787-900 into operation – its 26th long-haul aircraft altogether.
Uniform Boeing fleet
Despite the current delays in the delivery of commercial aircraft, Air Europa continues to meet the forecasts specified in its Strategic Plan. First and foremost, the company, which has an exclusive agreement with frame maker Boeing, has unified its fleet structure. In addition to the 26 Boeing 787s, the Madrid-based carrier operates 27 single-aisle Boeing 737-800s, which will soon be joined by its first Boeing 737 MAX. Cargo-only aircraft do not belong to its fleet.
