Fusiones y Adquisiciones

✈ Air Europa, valued between €600-800 million, must address its equity balance within three months as the accounting moratorium extension ends on December 31. The Hidalgo family hired EY and PwC for the valuation ahead of a capital increase to avoid dissolution. Air Europa’s Ebitda for 2024 is projected at €200 million, with debt exceeding €2,000 million, including €1,300 million from aircraft leasing contracts. The company has until 2026 to repay €475 million to SEPI. Capital increase estimates range from €80-€200 million. IAG, owning 20% of Air Europa valued at €125 million, may need to participate to prevent dilution.

✈ Air France will start testing traveler reactions to flights without free onboard meals on routes from Charles de Gaulle to Lisbon and Helsinki beginning January 2025, targeting flights under three hours. Passengers will instead receive a complimentary drink and sweet item like a cookie. This change mirrors practices by airlines such as Lufthansa and British Airways, amid market trends. However, Business Class services remain unchanged with full service maintained.

📍 Juan José Hidalgo, presidente de Air Europa, reaccionó con exultación ante la decisión de Iberia de no adquirir su aerolínea el 1 de agosto debido a obstáculos de la Comisión Europea. Air Europa, con deudas de 475 millones de euros a SEPI y un crédito de 141 millones con aval del ICO, debe restaurar su equilibrio patrimonial antes del 31 de diciembre para evitar la disolución. Conversaciones avanzadas con Lufthansa y Air France-KLM sugieren posibles acuerdos, mientras que la empresa terminó 2023 con un déficit de fondos propios de 499,9 millones de euros, reducido a 259 millones tras ajustes contables.

✈️ Air Belgium, co-owned by the state of Wallonia, agreed with creditors to seek survival resources, ceases passenger transport on October 3, but will continue leasing aircraft with crew. The airline has faced years of commercial failures, including routes to Mauritius and South Africa. With a current fleet unsuitable for passenger profit, Air Belgium, employing 500 people, needs €18 million to survive and must now negotiate debt repayment terms.

🏖️ Nigel Pope, an English travel expert, warns of "security issues" for British tourists in Benidorm, as reported by the Mirror. He advises carrying minimal items at night, staying sober, and sticking together as a group to avoid trouble. Pope, known for his TikTok travel advice, claims to be widely recognized and praised as the "original TikTok guide" to Benidorm.

🛫 China Development Bank Financial Leasing acquires 80 Airbus A320 aircraft, to be leased globally, primarily to airlines. Deliveries are set to start from 2030, stretching at least until 2022, amidst a saturated order book for Airbus, which is delivering over 60 aircraft monthly. The delay indicates Airbus's saturation, impacted by transferred Boeing orders and supplier pace issues.

🏦 Stelios Haji-Ioannou, founder of Easyjet, holds the Easy brand, used in over 200 sub-brands like EasyCinemas, EasyCars, and EasyHotels. Obsessed with brand protection, he sues for any use of "Easy" or his trademark orange, but recently lost a case against Easyfundraising, a charity, with the judge ruling no risk of confusion. Stelios plans to appeal.

✈️ Wizz Air will disrupt the London-Jeddah route with unbeatable prices starting at £135 (~€160) using the cost-effective A321, challenging competitors like Saudia and British Airways. The A321XLR's impact on the market, prioritizing price over comfort, will be tested from March 31. Wizz Air CEO Jozsef Varadi claims costs are a third of British Airways', which is entering the route in November. Wizz Air has acquired 47 A321XLRs, strategically placed at Malpensa and Gatwick to rival legacy airlines on medium-haul routes.

💸 Southwest, pioneering low-cost airline in the U.S., faces profitability issues. Influential investor Elliott Investment, led by billionaire Paul Singer, expresses dissatisfaction with CEO Robert Jordan. Demanding changes, Singer has orchestrated the departure of six directors, replacing them with four new ones, some loyal to him. Additionally, he secured a timeline for President Gary Kelly's exit next year. Southwest's market value halved over three years, exacerbated by a $1 billion loss from a computer glitch last year.

✈ Lufthansa, in the initial stages of purchasing Italy's Ita, has also shown interest in acquiring Portugal's TAP, Spain's Air Europa, and the main airline of the Baltic countries, Air Baltic. Air Baltic, the Latvian airline, operates across Estonia, Lithuania, and Latvia. Negotiations are in the early phases, and Air Baltic is entirely state-owned with private management. Lufthansa may face minimal competition hurdles, except for overlapping routes between Germany and Latvia, Lithuania, Estonia.