Fusiones y Adquisiciones

✈ Wizz Air, an American-owned low-cost airline based in Hungary, planned to expand in Saudi Arabia but reversed its decision due to unforeseen outcomes. Jozsef Varadi, head of the company, announced there will be no Saudi license nor the forecasted 50-aircraft fleet. Instead, the first A321XLR aircraft will be based in Gatwick, London, flying to Jeddah from March next year. Challenges include the Ukraine war impact, Israeli conflict, Pratt & Whitney engine issues, and unsecured fuel prices. Wizz Air operates four brands: Wizz Air, Wizz Air Malta, Wizz Air UK, and Wizz Air Abu Dhabi.

🚀 Antonov announced a temporary halt to the restoration of the world's largest plane, the An-225 "Mriya", destroyed in February 2022 by Russian forces at Gostomel Airport near Kiev. Conservation tasks for the remaining parts have been completed, with a special fund raising around $3 million for these efforts. The fund benefited from selling the plane's rights for Microsoft Flight Simulator. Reconstruction will resume post-conflict, with final costs pending, potentially offset by confiscated Russian plane parts in Canada and Germany.

📍 Luis Gallego, CEO of IAG, has stated that the acquisition of TAP Air Portugal is not a priority and the group's main goal is to maintain financial strength. IAG will carefully evaluate privatization conditions set by the Portuguese government before deciding, expected before the end of September. Despite showing strong financial results and distributing dividends for the first time in five years, IAG faces competition from Air France-KLM and Lufthansa, who are also interested in TAP. In 2023, IAG's revenue rose from €13.6 billion to €14.7 billion.

🛫 Palma's airport, from November 1 to March 31, is set to see a 3% decrease in passengers with 64,472 scheduled, despite reducing flight numbers. The Balearic Islands overall will experience a 5.3% growth in the 23/24 winter season. Mahón airport anticipates a 17% increase (802,268 seats), and Ibiza will have a 7.9% rise in flights (1.7 million seats). Ryanair leads in operations at Palma, followed by Vueling and others. Six national destinations from Palma lead the top ten, including Menorca and Ibiza, with the top three international destinations being Berlin, Cologne, and Frankfurt.

🏠 KKH Property Investors will transform Sevilla's former Fábrica de Tabacos into a combined work and leisure space named Vera Sevilla after investing over €250 million. Completion is expected by Fall 2026, featuring a luxury hotel, tertiary and commercial spaces, cultural facilities, neighborhood amenities, and a five-hectare urban park with a 300-meter riverside walk. The Vera building will be a multifunctional space over 12,000 square meters, with additional office and commercial areas exceeding 9,000 square meters. The hotel will include 210 spacious rooms and suites, restaurants, a gym, a pool, and a 600 square-meter event room. The purchase of the factory was completed in 2023, with the first phases of construction slated to finish by late 2025, and the entire project by the second half of 2026, designed by Carlos Ferrater and Kengo Kuma.

✈ 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.