Fusiones y Adquisiciones

✈ Lufthansa Group, comprising several airlines in Central Europe, will hire 10,000 new employees in 2023. Roles include 2,000 flight attendants, 1,400 ground handling staff, 1,300 technicians, 800 pilots, and 1,200 administrative workers. Over half of the positions are in Germany, with others at Eurowings and Austrian Airlines. Despite the mass hiring, Lufthansa continues its Efficiency Program, which involves fewer layoffs than in 2024. The company hired 30,000 employees over the past three years and currently employs 100,000 staff across 90 countries. The hiring move is notable in Germany, a country facing daily job cuts.

💸 Lufthansa will finalize the purchase of a 41% stake in ITA Airways on January 13, costing 325 million euros. The acquisition follows over a year of negotiations, with a critical approval from the European Union's Directorate-General for Competition on November 30, regarding the slot transfer proposal. This completion marks the end of a process initiated on November 30, 2023, after an agreement was notified to the European Commission. Selected partners for the operation are IAG and Air France-KLM for long-haul, and EasyJet for short and medium-haul.

📈 IAG, the aviation group which includes Iberia, British Airways, Aer Lingus, Vueling, and Level, saw its value increase by 93% from the previous year, though it is still 30% lower than five years ago. As of September 2022, the stock value has tripled since the pandemic's decline. IAG now distributes dividends again and has a price-to-earnings ratio of 7, compared to Easyjet's ratio of 9. Aviation industry volatility is influenced by fuel prices, market instability, accidents, pandemics, and new taxes.

❄ High season in Antarctica begins with tour operators predicting record-breaking sales, exceeding all historical records. Tourism in the region was not possible until 1991, except for official missions. That year, a Protocol for Environmental Protection was signed allowing tourist visits. Initially, only 6,400 visited, but before COVID-19, which started spreading in March 2020, annual visitor numbers had reached 75,000. In the summer of 2022 and 2023, visitors surpassed 100,000, with the previous year slightly exceeding 120,000. No permanent tourist accommodations exist in Antarctica; visits are via cruises with land (or ice) disembarkations. Each visitor is estimated to accelerate snowmelt by 83 tons due to soot. Some tour operators have limited cruise sizes, but Fildes Bay often sees queues of ships waiting to dock.

🏢 Bain Capital sold three short-stay apartment complexes to Greystar for €300 million, accompanied by developer Momentum. The properties, located in Alcobendas, Barakaldo, and Sant Cugat del Vallés, total nearly 1,800 units. Another asset in Madrid's Carabanchel was excluded, lowering the deal from the negotiated €400 million. Bain Capital has been active in hotel asset transactions, including a recent €25 million acquisition of Hotel Casa Lit Barcelona in July with Stoneweg Hospitality. Since 2019, Spain's flex living sector has seen over €560 million in investment, with €140 million traded last year.

🛫 American Airlines' stock value dropped this Tuesday after a brief worldwide fleet halt on one of the busiest air travel days in the US. The issue, caused by a technical problem related to a supplier, was resolved within an hour. The suspension was initially requested from the FAA but was then retracted. The US anticipates 40 million air trips during the holiday period ending January 2, with peak demand on December 20 and 27, and significant traveler numbers also on December 24.

🚀 Malaysia Airlines replaced its old fleet with brand-new Airbus 330 equipped with Rolls Royce Trent 7000 engines. On December 19, the newest aircraft suffered an engine failure on its inaugural flight from Kuala Lumpur to Melbourne, leading to grounding. The airline identified three types of issues, citing poorly done factory work as a factor. The delivery was delayed by 15 days due to factory problems, including hydraulic system dysfunctions. The airline expressed concern over reputational damage and economic impact during a commercially significant period. Rolls Royce and Airbus have been asked for explanations, with no comments from Airbus yet.

🏖️ Hyatt Hotels Corporation has entered into an exclusive agreement to negotiate potential strategic alternatives with Playa Hotels & Resorts N.V., which may include Hyatt's acquisition of Playa. Mark S. Hoplamazian, Hyatt's President and CEO, emphasizes Playa's strength in high-quality all-inclusive resort operations and their premium portfolio in the Caribbean and Mexico. No transactions are guaranteed from these exclusive talks, and Hyatt has reported a 9.99% ownership of Playa's outstanding shares to the U.S. Securities and Exchange Commission as required by federal law. Further comments will be reserved until a definitive agreement is fully executed.

🚀 Etihad Airways retires the last of ten stored Airbus A380s in Teruel, with seven now in service, flying to Paris, New York, Singapore, and London. This marks the end of a seven-year partnership with TARMAC Aerosave, who maintained over 30 of Etihad's aircraft. TARMAC's next project involves two Air France A380s stored in Tarbes, southern France.

💸 Volotea's negative working capital worsened to -€240.18 million in 2023, a deterioration of €105 million from -€135.18 million in 2022. The airline's liquidity ratio also declined to 0.43, with current assets at €184.6 million against current liabilities of €424.8 million. On November 12, Volotea delayed a €36.2 million payment to SEPI and banks for a state bailout of €200 million and an ICO-backed loan of €150 million. The airline reported a net worth hole of €423 million in 2023, up from €316 million in 2022 and €159.9 million in 2021, marking its fifth consecutive year of losses, totaling €97.5 million for 2023.