IAG International Airlines Group will consider selling its 20% minority ownership of Air Europa (UX, Palma de Mallorca) depending on what the majority shareholder of the carrier, Globalia, decides to do with the company as it scrambles for new investors and fresh money allowing it to pay its EUR615 million euros (USD665 million) COVID-era debt.
In an interview with the news agency Reuters, IAG’s chief executive Luis Gallego said the sale of its minority ownership “is something that we are going to decide when [Globalia] takes a decision about what they do with the company.”
Earlier this month, it was reported that Air Europa had received investment offers from Air France-KLM and Lufthansa Group to acquire 51% and 25% of the company, respectively.
Air Europa owes EUR615 million in two loans due in 2026 and 2028: a EUR475 million (USD513 million) bailout from Spain’s sovereign wealth fund (Sociedad Estatal de Participaciones Industriales - SEPI), and a EUR140 million (USD152 million) from Spanish state-run credit bank Instituto de Crédito Oficial - ICO.
ch-aviation reached out to Air Europa for comment but it was not immediately available.
On a separate note, Gallego said that IAG (owner of British Airways, Iberia, Vueling Airlines, Aer Lingus, and LEVEL) remains interested in TAP Air Portugal as it looks to operate a dual hub in Lisbon and Madrid Barajas. However, it expects further delays due to the current elections in Portugal.
“If there is continuity with the current government, I think the process is going to be delayed maybe two, three months,” Gallego said, while if there is a new government, “I think we are going to have a bigger delay.”
