While everyone waits with bated breath for Portugal’s government to take bids on TAP, the next big target in Europe’s airline consolidation wave, a smaller airline is back in the news.
Air Europa, which twice was on the verge of purchase by International Airlines Group, has confirmed it is in talks with fellow Sky Team member AirFrance/KLM about commercial cooperation and possibly an investment by the French/Dutch airline, which has indicated it might like to buy 20% of Air Europa—the same level of investment still held by IAG. The rest is owned by Spain’s Hidalgo family through their Globalia company.
Air Europa operates a wide variety of long-haul routes to Latin and South America, especially Brazil, Mexico and Argentina, a market that increased its interest to IAG, which also owns British Air, Aer Lingus and Spanish carriers Iberia and Vueling. The AirFrance/KLM deal would likely not raise the regulatory issues that killed the IAG deal, since it would not further consolidate control of flights to and from Spain.
