Fusiones y Adquisiciones

✈ 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.

🛫 On the eve of Three Kings' Day, Ryanair flight FR2501, a 737Max with registration 9H-VUR from Malta, was scheduled to fly from Gran Canaria to Berlin, departing at 16:50 and expected to arrive ten minutes before 23:00. Delayed by prior flights, it took off at 18:40. Berlin's airport, with strict operating hours from midnight to 05:00, closed as the plane, already at an altitude of 1,225 feet, was preparing to land, forcing it to divert 162 miles to Hannover, where it landed at 00:36. Ryanair provided buses for passengers to Berlin, a three-hour journey. The next morning at 09:37, the plane flew empty to Berlin. Ryanair chose to avoid additional costs of accommodating passengers and crew in Gran Canaria, limiting their expenses to the buses and €400 in delay compensations.

✈ 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.