Fusiones y Adquisiciones

🛫 Air Europa set a deadline for Iberia until December 13 to join a capital increase. If Iberia does not participate, it risks diluting its current 20% stake. The Hidalgo family recently injected €65 million through Globalia to prevent Air Europa's legal dissolution. This move aims to ensure growth amid market instability, as per Globalia's president Juan José Hidalgo. Iberia is yet to decide on the investment, weighing it on financial criteria, while Air Europa reports strong operational performance for 2024.

🚀 Pakistan International Airlines (PIA), struggling with a $3 billion debt and annual losses of $270 million, failed to sell at an auction in October. The government's initial sale price was $306 million, but the highest bid received was only $36 million. Privatization Minister Abdul Aleem Khan is now offering a second auction with an additional incentive of $95 million in tax exemptions for buyers. Further fiscal benefits are hinted, contingent on the potential buyers' plans for the airline. Despite losses, the government retains hope in PIA's profitability, as unspecified Gulf companies show interest.

✈ Air Europa's majority owners, the Hidalgo family (80%), are in talks to sell up to 20% of the company to Air France-KLM, a deal that could surpass €100 million, exceeding the amount paid by IAG during the pandemic. The Spanish airline reported a record profit of €165 million in 2023, despite a consolidated negative net worth of €455.3 million at year's end. The Hidalgo family had previously injected €65 million into the airline to prevent its dissolution.

🏬 Ontario teachers' pension fund in Canada is selling its shares in several airports including London City, Birmingham, Bristol, Copenhagen, and Brussels, with ownership stakes ranging from 25% to 70%. They're leveraging the current aviation boom and have offered existing stakeholders a 30-day preferential purchase period, with Australian fund Macquarie showing strong interest. Meanwhile, Canadian fund PSP is buying Ferrovial's majority stakes in Aberdeen, Glasgow, and Southampton airports, in contrast to the Ontario fund's divestment.

🚀 China Southern, one of China's three major state-owned airlines, has listed all of its GEenx-1B engine-equipped Boeing 787-8s for sale. The offer requires the purchase of the entire fleet, not parts. The oldest aircraft dates back to May 2013. Interested parties needed to express interest before this Monday, and a condition report for each aircraft will be available on the 30th. China Southern owns a total of 650 aircraft but seeks to standardize its fleet, choosing to retain its 18 Boeing 787-9s. The 787-8 model has recently seen one aircraft be dismantled, highlighting the high value of spare parts amid manufacturing delays. In comparison, Air Europa operates 23 Boeing 787s, including both 787-9 and 787-8, without issues.

✈ Finnair canceled 300 flights due to pilot strikes on December 9 and 13, affecting over 30,000 customers. The airline, which is recovering from a major business model shift prior to 2023, formerly relied on transporting travelers across Siberian airspace to the Far East via Helsinki as a hub. The closure of Russian airspace has forced reroutes through Iran, but Finnair has successfully undergone a radical austerity program and route reinvention. Pilots now seek better salary conditions after previously accepting limited terms.

🏠 Platinum Estates received final approval for the Las Dunas Club project in Marbella, a luxury resort with a €350 million investment. Initially planned as a W Hotels, it will now be a St. Regis or The Ritz-Carlton. The project, delayed for 8 years, includes a 5-star hotel with 186 rooms and 180 branded residences. Construction is expected to take 36 months, targeting a 2028 opening. The investment increased from the original €300 million due to construction cost changes and the brand upgrade.

🚀 A Boeing 737 operated by Spanish airline Swiftair for DHL crashed near Vilnius Airport, Lithuania, during landing approach. Departing from Leipzig, Germany, at 03:00 local time (02:00 GMT), the crash occurred 1.5 hours later, as reported by Flightradar24. Rescue services found one casualty and transported three survivors, including the pilot, to the hospital. The plane hit a two-story building; however, the 12 occupants were unharmed. Possible crash causes include human or technical failure, and terrorism hasn't been ruled out due to GPS signal jamming in the region. Swiftair's largest disaster involved an MD83 crash in Mali, claiming 116 passengers and 6 Spanish crew members due to ice formation on the aircraft.

✈ Estonian government has let its public airline, Nordica, and its subsidiary Xfly go bankrupt, affecting 579 employees with immediate job loss. The Nordic Aviation Group, led by Director General Remco Althuis, announced the unceremonious decision to sell assets and pay creditors. Nordica, established in 2015, failed to compete with Air Baltic and sought sale post-COVID-19 pandemic. Negotiations with Danish businessman Lars Thuesen, owning 20% of Air Baltic, ended in failure this week, prompting dissolution.

✈ Lufthansa will proceed with the purchase of ITA despite the crisis between the Italian government, ITA's majority shareholder, and Lufthansa, the 41% owner and airline manager. Conflicts arise from differing priorities: Lufthansa seeks profitability for investors, while the Italian government aims to win the upcoming elections. The coexistence of these two cultures in the same capital creates trust issues. In Portugal, TAP airline is for sale, but parliamentary opposition seeks to maintain control for electoral reasons, affecting the airline's operations.