Air France-KLM Group is making a bold move, reportedly offering a generous €300 million to acquire a controlling stake in Air Europa, the Spanish carrier owned by the Hidalgo family. This surprising offer throws them into the race to gain the majority share of Air Europa, challenging the previous favorite, Lufthansa Group from Germany.
Pilotcenter.net News states that Air France-KLM plans to pay the Hidalgo family in cash for a 51% stake in Air Europa, while also assuming the airline's debts to the Spanish government incurred during the pandemic to keep it afloat. Air Europa has faced financial difficulties for years, a situation worsened by a failed takeover attempt by the International Airlines Group in 2024. Lufthansa had seemed poised to invest €240 million for a 25% stake until Air France-KLM entered the picture with a stronger offer.
Lufthansa Group has been aggressive in acquiring shares in leading European airlines, holding majority stakes in various carriers already. Their interest in Air Europa stems from the potential for growth and partnerships this acquisition could bring. This decision hangs in the balance with the Hidalgo family split between the Air France-KLM and Lufthansa proposals, potentially considering how each party could enhance Air Europa's operations and competitiveness.
Air France-KLM's Chief Executive, Benjamin Smith, has expressed interest in acquiring a stake in Air Europa, signaling a strategic move for the airline group. Air Europa's current fleet consists of 26 Boeing 737-800s, seven Boeing 787-8 Dreamliners, and 15 787-9s, serving millions of passengers across Europe, Latin America, and the Caribbean. The future of Air Europa now lies in the hands of these aviation giants, offering new possibilities and challenges for the Spanish carrier.