Fusiones y Adquisiciones

🛩 Boeing surpassed Airbus in airplane production in January and February. The company's CFO, Brian West, announced on Wednesday that Boeing could meet the government's production cap of 38 planes per month, triggering a 6% increase in stock value. Boeing is also advancing with 5 B787 deliveries per month, planning to raise this figure along with sales of the 737Max, Boeing's best-selling aircraft. Despite recent existential crisis levels, Boeing is not as affected by supply chain issues as Airbus.

✈ Lufthansa faced financial losses last year due to an outdated fleet and delays in new aircraft service entry. The airline is working on introducing Allegris business class seats, which are already installed on some A350 units but not yet certified for the 787. With summer service in mind, Lufthansa considers flying the 787s with some new seats unoccupied to circumvent certification delays. Carsten Spohr, the group's CEO, cited ongoing manufacturer bottlenecks expected to last through the decade. Of the 45 Boeing aircraft meant to be operational last year, 15 are 787s now starting to be delivered. Lufthansa cautiously anticipates flying some of these planes in summer with blocked seats and expects 26 new aircraft this year.

✈ Qatar Airways currently serves 50 million passengers annually and aims to reach 80 million by 2030 through an extensive purchase of aircraft from Airbus and Boeing. However, the company's top executive, Badr Mohammed Al-Meer, surprisingly announced that this growth will cease once the maximum capacity of Doha is reached, as the airline commits to maintaining quality service without further expansion, in contrast to competitors who have sacrificed service quality for growth.

🛫 The Comisión Nacional de los Mercados y la Competencia (CNMC) authorized Ávoris's acquisition of Dit Gestión on February 7, recognizing significant horizontal overlap in the management groups market but seeing no competition risks due to numerous operators, some sizable, and services offered outside the market with no significant entry or expansion barriers. Dit Gestión now joins Ávoris's Geo Travel Partner, catering to retail travel agencies' group management.

🛫 CNMC approved Geo Travel Partner (Ávoris subsidiary) and DIT Gestión concentration operations in February. Ávoris, owned by Grupo Barceló, offers wholesale and retail travel agency services, group management, air and road transport, and gift boxes through subsidiaries, including Geo Travel Partner specializing in group management for retail travel agencies. DIT Gestión provides retail and wholesale travel agency services. The merger leads to significant horizontal overlap in the management group market but poses no competition risk due to numerous operators, alternative service providers outside the market, and no significant entry barriers or vertical market closure incentives.

📍 Air Baltic, a Latvian airline, lost €120 million in 2024 despite a record revenue of €748 million, a 12% increase from the previous year. Passenger numbers rose to 8.3 million. The losses stemmed from Pratt & Whitney engines on their A220 aircraft requiring extensive checks, leading to the cancellation of 4,670 flights. The airline is expanding operations in Estonia and Lithuania and remains optimistic about its future, including a potential London stock exchange listing within the year.

🛫 TAP's sale in Portugal halted due to political crisis and fall of Prime Minister Luis Montenegro, delaying privatization possibly by 6-12 months post-May elections. IAG, Lufthansa, and Air France-KLM compete for acquisition, adhering to Portugal's terms of maintaining Lisbon hub and strategic routes. Privatization managed by Parpública, advised by Bank of America and Morais Leitão. TAP carried 16.1 million passengers in 2024, a 1.6% increase, and improved revenue per seat by 3.4%.

✈️ Air France offers €300 million for a 51% stake in Air Europa, valuing the airline at €588 million, plus €475 million in state rescue funds, totaling €1.073 billion. This reduces the Hidalgo family, current 80% owners, to 29% control, while IAG retains 20%. In contrast, Lufthansa proposes injecting €240 million for a 25% stake, which Air Europa could use to repay part of its SEPI loan, reducing its public rescue debt to €235 million.

✈ Jet2, facing delays from Airbus in their fleet renewal from Boeing to A321s, is seeking rental planes. Airbus was to deliver 14 new A321s by this summer, contributing to a total of 23 units. However, some deliveries will be late, prompting Jet2 to consider wet lease options from companies like Albastar, Titan, Air Explore, or ETF. Jet2's total Airbus A321 order is 134 aircraft, while their current fleet includes 93 operational B737s, with B757s now retired.

✈ Air France, with CEOs Emmanuel Macron and Ben Smith recently showing interest in the Portuguese airline TAP, claims to have the best offer due to strong government ties, amidst a potential crisis in Lisbon with elections due in May. France holds 27.9% and the Netherlands 9.13% of Air France KLM's shares, making them unique among Europe's big three airline groups for successfully working with two governments. Smith cites a 20-year experience with governments as a strategic advantage for Portugal's consideration.