- Iberia buys Air Europa for 1,000 million euros to make Madrid a great European hub
The purchase of Air Europa by IAG, through Iberia, which was announced on Monday will result in an aeronautical giant that will monopolize 72% of the domestic flight traffic in Spain and strengthen its position on the routes between Europe and America .
This is the largest operation in the history of Spanish aviation led by both companies. IAG is the fifth European group by number of airplanes, behind KLM-Air France and is formed by Iberia, British Airways, Vueling, Air Lingus and Level. It has 63 long-haul aircraft.
The incorporation of Air Europa will generate more traffic, more destinations and more airplanes. Specifically, by 2024, both can add up to 12 million more passengers, 10 additional long-haul destinations and 37 additional aircraft to the fleet, of which 16 would be dedicated to the long radius.
With this operation Iberia wins 24 transatlantic routes and this will strengthen the position of IAG on flights to other continents from Spanish airports. With the purchase will add 42% of the total of those who leave our country, since Air Europa is the second airline with the highest traffic of this type in Spain, behind Iberia.
Until September, it reached 2.1 million passengers to other continents, especially to America, 11.7% of the total 18.1 million accounted for in Aena. Iberia approached 4.8 million, Vueling at 550,000 and Air Nostrum contributed another 165,000.
With the incorporation of Air Europa, IAG's market share in air connectivity between Europe and Latin America will increase from 19 to 26%, leaving behind its maximum rival, Air France-KLM (19%), and increasing the distance with the group Lufthansa (9%), Tap (8%) or Latam (8%).
Control of national routes
IAG will control four of the first six airlines by number of passengers on domestic flights in our country (Vueling, Air Europa, Iberia and Iberia Express). Until now, Ryanair was the airline that moved more passengers in Spain, also counting international flights. Now, with the purchase, Grupo Iberia (which integrates Iberia, Iberia Express and Air Nostrum) moves it on the podium.
Until September , IAG companies plus Air Europa accounted for 47.2 million passengers on domestic flights in those nine months, out of the total of 65.3 million that flew in the Aena network. Air Europa accounted for 9.2 million passengers on domestic flights in Spain, 14.1% of the total, only behind Vueling (which is part of IAG) and Ryanair (which is not part of the group).
In the whole of the air traffic (national and international flights), IAG and Air Europa would obtain a market share of 38.2%, with 81.4 million passengers, compared to a total of 213.3 million until September in the network from Aena.
Air Europa, until now owned by Globalia, operates regular national and international flights to 69 destinations, including European and long-distance routes to Latin America, the United States, the Caribbean and North Africa. In 2018, Air Europa invoiced 2,100 million euros and transported 11.8 million passengers with a fleet of 66 aircraft.
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