British Airways owner IAG agreed on Monday to buy Spain's Air Europa as the global aviation sector charts a path through high-profile failures, fierce competition, economic woes and high fuel prices.
London-listed International Airlines Group said in a statement that it has signed a transaction agreement with Air Europa owner Globalia in a deal worth 1.0 billion euros ($1.2 billion) to boost its long-haul routes to Latin America and the Caribbean - and also cement Madrid airport's status as a top aviation player.
Air Europa will complement IAG's existing Spanish divisions Iberia and Vueling, and help the Spanish capital take on the four largest air hubs in Europe, namely Amsterdam, Frankfurt, London Heathrow and Paris Charles De Gaulle, it said in a statement.
The deal will further expand a portfolio that also includes Ireland's Aer Lingus and low-cost European carrier Level, and is part of a broader consolidation that saw a number of airlines collapse in 2019.
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