Air France-KLM in talks to take a 20% stake in Air Europa, El Economista says

Industry:    7 days ago

Franco-Dutch airline group Air France-KLM is in talks to take a 20% stake in Spanish airline Air Europa, newspaper El Economista said on Wednesday, citing unidentified sources.

The price of the stake would be higher than the 100 million euros ($104.97 million) paid by British Airways owner IAG for a similar stake, the newspaper said.

Air Europa, owned by Spanish family group Globalia, is considering raising cash through a capital increase.

Back in August, IAG dropped its plan to take over Air Europa after European anti-trust watchdog said the remedies offered by AIG were not enough.

Asked about the newspaper report, Air France-KLM said discussions on commercial cooperation with Air Europa are underway, within the framework on the SkyTeam alliance, but did not comment on the acquisition of a stake in the Spanish airline.

Air Europa and Globalia did not immediately respond to requests for comment.

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