Iberia and Air Europa merger halted.

The purchase of Air Europa by the IAG group (Iberia) was to turn Barajas airport in Madrid into a major hub for traffic distribution with the USA. | UH

Majorca Daily Bulletin reporterMallorca14/12/2021 09:21
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The European Commission will soon announce that it does not approve or authorize the purchase and sale of Air Europa by Iberia as the conditions imposed have not been met. This places Globalia and IAG at a complex crossroads to achieve a business solution to this operation, according to sources. "Brussels was going to communicate it tomorrow (today), but will wait until Friday or next Tuesday to announce its final decision. The situation is very complicated and now it is time to face this situation in the best possible way," the same sources said yesterday.

As soon as Brussels' position is official, both Iberia (IAG) and Globalia (Air Europa) will try to resolve the deal. Both parties have remained silent and have not been available for comment.

Air Europa (Globalia), with the debt of more than 600 million that it has to pay, will have to act strategically to solve this situation. All options are being considered. The Government's decision on this operation will be key for the future of Air Europea and the Spanish airline industry.

The impact of the latest variant of the coronavirus, omicron. has caused a 35% drop in European airline reservation sales in one week due to the fear of flying to tourist destinations that may be affected during this Christmas season by restrictions imposed by European governments.

This situation affects Spanish airlines and airlines from other European countries. Economic, organizational and organizational problems and being alone in this situation will directly affect all European airlines in the short and medium term. State aid has been key to avoid bankruptcy in 2020 and 2021, but airlines need liquidity to face next year's season and air routes.