Fusiones y Adquisiciones

📍 Javier Hidalgo aims to secure €240 million to eliminate a participatory loan while seeking more favorable bank credit terms than the previous SEPI loan of €235 million. Air Europa, part of Globalia, is exploring new partnerships, potentially offering a 20% stake to comply with EU airline ownership regulations. Interested parties include Air France-KLM, Lufthansa, Etihad, Delta, and investment funds, with advisement from PJT Bank. The capital increase initiative has garnered significant interest, according to CEO Jesús Nuño de la Rosa.

🏨 Hyatt Hotels Corporation targets 13 new markets in the EAME region (Europe, Africa, and Middle East) from 2025 to 2028, following growth in Europe with RevPAR up 12.1%, ADR increase of 5.8%, and occupancy rising by 3.8% in the first nine months of last year. In Spain, Hyatt's presence soared from 4 to 55 hotels, now encompassing over 14,500 rooms as of December 31, 2024. The company's portfolio has grown 90% since 2017, now exceeding 1,350 properties. Planned debuts include Estonia, Iceland, Romania, Cape Verde, and Mauritius, with an aim to add 50 new luxury and lifestyle hotels globally by 2026. Hyatt's European, African, and Middle Eastern portfolio includes over 200 hotels and 45,000 rooms across 40 countries, tripling its European room count since 2017.

💰 Late last year, MHG Continental Holdings attempted to delist Minor Hotels Europe & Americas, formerly NH Hotel Group, from Spanish stock exchanges in Madrid, Barcelona, Bilbao, and Valencia by launching an offer at €6.37 per share. The bid, complying with CNMV requirements, approximated the €6.4 per share Minor paid in 2018 for 94% of NH. The offered premium was 37.6% over the pre-announcement price of €4.63, totaling €114.8 million for the company valued at €2.775 billion. This second attempt follows a halted 2023 effort due to CNMV and independent advisors' opposition.

🛫 Global Airlines, with a single A380 purchased from China Southern, ambitiously planned routes from London to central United States. The airline has been preparing and showcasing the aircraft without confirming commercial service or a second plane for route operations. The A380 underwent preparation by HiFly in Portugal and maintenance in Dresden, Germany, and reached HiFly hangars in Beja, Portugal, for testing. James Asquith, the owner, emphasized the HiFly partnership but hasn't announced an operational start date, casting doubt on the airline’s future.

✈ Air Malta, the state airline of Malta, no longer operates flights but still incurs an annual expense of over €2 million for 51 employees. The airline ceased operations approximately a year ago, transferring assets to KM Malta Airlines, which will become operational in April 2024 with €350 million in aid from the Maltese government, approved by the European Commission. The country's finance minister, Clyde Caruana, disclosed these costs in response to a parliamentary question.

✈ Air Nostrum, previously a "saneada" company pre-Covid, returned to profit in 2022 and is up-to-date on all payments. It agreed with SEPI to repay the €111 million state rescue fund by 2028 instead of starting in 2026. The company also plans to focus on repaying €78 million remaining from the initial €133 million ICO-backed loans. From 2021 to 2024, Air Nostrum repaid €85.8 million in amortizations and interest to SEPI and banks.

✈ Volotea, led by Carlos Muñoz, reduced an initial €7.7 million fine to €1.1 million (seven times less) after successfully appealing for passenger rights violations with carry-on luggage fees. Other airlines—Ryanair (€107.7 million), Vueling (€39.2 million), Easyjet (€29 million), and Norwegian (€1.6 million)—had their fines upheld. Volotea's reduction was due to actual income from carry-on fees being much lower than estimated by Consumo, at €317,134.23 instead of €5.9 million. Volotea's total penalties included €989,999 for baggage fees, €100,001 for seat reservation surcharges for minors' companions, €10,001 for not accepting cash payments on flights, and €11,000.01 for misleading omissions and lack of clarity in pricing.

📈 Raymond James raised their target price for IAG, the parent company of Iberia and Vueling, by 40% to €4.75, signaling a 36% potential increase from the previous close. Barclays also upped their target by 17% to £3.75, equating to €4.45, both surpassing the market consensus average of €3.63 per share. The positive trend reflects analysts' confidence despite challenges like rising oil prices.

✈ Ryanair, based in Ireland, publicly advocated in the UK for limiting passengers to two strong alcoholic drinks at departure airports using boarding passes to ensure safer flights. The airline, which sells alcohol onboard, faces opposition from airport bars unwilling to reduce revenue. UK tabloids have framed this as Ryanair wanting to change the vacation experience, suggesting holidays without pre-flight alcohol are not holidays. No implementation date or specific airport locations mentioned.

✈ Wizz Air to receive third A321XLR, a long-range aircraft, for its base at London's Gatwick Airport; first equipped with Pratt & Whitney engines amid past issues. The model, with 217 orders from 13 airlines, will fly the London to Jeddah, Saudi Arabia route. Wizz Air has ordered 47 ultra-long-range planes, shifting focus from competition with Ryanair and Easyjet to the Middle East market, already operating in Armenia, Azerbaijan, and with a base in Abu Dhabi. The aircraft is for Wizz Air UK, while the second goes to Wizz Air Malta, primarily operating from Italy. A321XLRs also use Leap 1A engines from CFM, as seen with Iberia and Aer Lingus.