The leaks coming from Brussels that the European Commission was going to make a statement today denying the sale and purchase operation of Air Europa by IAG (Iberia), has led to the airlines being forced to announce that they were breaking the agreement reached in November 2019, in order to give themselves a period of a month and a half to reformulate "other business structures that may be interesting for both companies". The statement sent yesterday to the National Securities Market Commission (CNMV), points out that, in addition to the previously agreed compensation of 40 million euros if the transaction did not close, IAG will pay Globalia an additional 35 million euros, amounts that will go to reduce the future purchase price and to avoid any litigation related to the sale and purchase.
IAG's CEO, Luis Gallego, said yesterday in the statement: "It is very disappointing that we have had to terminate the current agreement, but the decision makes sense given the current market conditions, the deep crisis resulting from COVID-19 and also given our desire to maintain a disciplined approach to capital allocation”.
The airline owned by the Hidalgo family, with the 75 million it will receive from IAG, can operate without problems during the coming months and prepare its entire summer schedule, with the aim of optimizing resources, structuring its fleet and maintaining employment, which is the objective of Globalia's chairman, Juan José Hidalgo. The scenarios that are open for Air Europa are very wide and all this will depend on the strategy adopted by the central government in the current situation. Financial sources point out that the new agreement reached with IAG contemplates that it will only buy a maximum of 49 % of Air Europa, as opposed to the 100 % it was initially going to acquire. The remaining 51% would remain in the hands of the State and the Hidalgo family.