BA Owner Agrees Takeover of Air Europa

British Airways owner International Airlines Group is to complete the takeover of Spanish carrier Air Europa.

For the remaining 80% of the specialised carrier to South America, IAG will pay €400 million.

The agreement with the owner Globalia comes after a €100 million, seven-year debt to Air Europa was converted into a 20% ownership share in that company last August.

The purchase, according to IAG, is "strategically essential" and places the company to take advantage of market development prospects in Latin America and the Caribbean as well as to improve access to Asia.

However, clearing legal barriers could add up to an additional 18 months to conclusion.

IAG chief executive Luis Gallego said: “This agreement will enable IAG’s Madrid hub to compete on an equal footing with other European hubs and consolidate its position in the South Atlantic.

“Madrid is the main gateway between Latin America and Europe and there are opportunities to expand its network, providing significant benefits to our customers, employees and shareholders.”

Air Europa will join fellow Spanish carrier Iberia and Vueling under the IAG umbrella.

The agreement came ahead of IAG announcing annual financial results today (Friday).