British Airways owner International Airlines Group has revived its interest in Spanish carrier Air Europa.
IAG is to loan Air Europa parent Globalia €100 million with the option to convert it into a stake of up to 20% in Madrid-based Latin America specialist Air Europa.
The agreement provides for a one-year period of exclusivity while discussions take place.
IAG added that “this is accompanied by a right to match any third party offer for the airline in the next three years, together with a right to exit alongside Globalia should it sell Air Europa at any time in the future”.
The parent of Spanish airlines Iberia, Vueling alongside BA and Aer Lingus, withdrew from a deal for Air Europa in December due to competition concerns.
But IAG said it maintained an interest in developing Madrid as a hub and committed to analysing “alternative arrangements” with Globalia.
IAG chief executive Luis Gallego said today: “We remain convinced about the strategic importance of this deal to the development and competitiveness of Madrid’s hub.
“Since we started negotiations, the world has changed.
“This agreement will give us time to evaluate with exclusivity alternative structures that may be of interest to both companies and offer significant benefits for their customers, employees and shareholders.”
IAG initially swooped for Air Europa in a €1 billion agreement in November 2019 to help it establish a position as a leader in routes from Europe to Latin America and the Caribbean.