Insatiable Lufthansa

The expansionist aims of the Lufthansa group seem to know no bounds. And they are destined to reshape Europe’s skies. Now that the ITAAirways deal has become a reality - even though the integration process is still in its early stages - the German giant is in direct competition with Air France-KLM to acquire a stake in Air Europa. The latter, the third largest Spanish airline after Iberia and Vueling, has been looking for a new investor for some time to repay the €475 million in state aid it received during the pandemic.
With a fleet of some fifty aircraft, Air Europa is tempting Lufthansa because of its significant market share on routes between Madrid and Latin America, where Lufthansa aims to strengthen its position. The Spanish long-haul network is in fact a strategic element for consolidating the German airline's position on the lucrative routes between Europe and the Americas, in direct competition with Iberia and Air France KLM. According to the Spanish newspaper El Confidencial, the Franco-Dutch group has offered the Hidalgo family (which controls Air Europa) €300 million for 51% of the shares and is willing to take on the airline's outstanding debts to the Spanish government. Lufthansa, on the other hand, has apparently offered €240 million in exchange for a 25% share. The German group's proposal would also include negotiations with Boeing for the 787 Dreamliner, thus strengthening the Spanish company's operational capacity. The decision now rests with the Hidalgo family, who appear to favour Lufthansa's offer, which would allow them to retain the majority of the shares and see Air Europa's value increase to over €1 billion in the medium term.

Mariella Cattaneo
Journalist