Air France-KLM drops bid to acquire Air Europa amid shareholder dispute

Air France-KLM has ended talks with Globalia, the owner of Spanish airline Air Europa, about purchasing a stake in the airline, the Franco-Dutch airline group’s CEO Benjamin Smith announced. 

“We’ve ended the discussions,” Smith said during the presentation of the group’s half-year results on July 31, 2025, when asked about the status of talks with the Hidalgo family, founders and owners of the Spanish travel group Globalia, which holds an 80% stake in Air Europa. 

In a later statement, seen by el Economista, Air France-KLM announced that the group had pulled out of the process due to an inability to come to an agreement with Globalia, resulting in the final withdrawal of the process. 

During months of ongoing discussions, Air France-KLM never publicly confirmed having submitted a formal offer for the deal. However, el Economista reported that the Franco-Dutch airline group proposed €300 million for a 51% stake in Air Europa.  

At the same time, the Hidalgo family initially valued a 20% stake at €240 million. They later adjusted this to the same amount for a 25% share, putting the airline’s value at around €960 million. 

Air France-KLM had been in talks with Spanish travel group Globalia to acquire a stake in Air Europa since November 2024. This is Air France-KLM’s third failed attempt to invest in Air Europa.  

The initial attempt occurred in 2019 but was postponed due to competing interest from another airline, namely Iberia. The second attempt took place in 2021, with support from Air France-KLM’s US partner Delta Air Lines. 

Separately, International Airlines Group (IAG), Iberia’s parent company, made offers to acquire Air Europa during this time. IAG CEO Luis Gallego offered €1 billion initially, before lowering it to €500 million. Both IAG bids were blocked by the European Commission due to regulatory concerns in Brussels. 

Since Air-France KLM pulled out of the agreement to buy a stake in Air Europa, Germany’s Lufthansa and Turkish Airlines have both made offers to Globalia to buy a stake in Air Europa, which is currently 20% owned by IAG. The post Air France-KLM drops bid to acquire Air Europa amid shareholder dispute appeared first on AeroTime.

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