Fusiones y Adquisiciones

💸 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.

✈ On September 13, travelers can save up to 30% on airfares, with a 12% decrease in flight demand leading to significant price reductions. Flights from Spain to Milan are 31% cheaper, while Gran Canaria offers round-trips for approximately 113 euros, a 25% discount. European destinations like London, Paris, and Brussels have up to 22% lower fares, and transatlantic flights to New York are 18% less expensive.

✈ Iberia Express, Air Europa, Binter, and Ryanair, the main airlines in the Canary Islands, are engaged in a price war over flights to and from the archipelago to offset the post-summer high season slowdown in September. Iberia Express's "Express Days" campaign, running until September 26, offers Madrid-Canary flights from €27 for travel between October 1, 2023, and May 31, 2025. Air Europa's "Time to Fly" campaign, valid until September 17, includes Tenerife flights from €35, available for travel until March 31, 2025. Binter's "Bintazo" for Madrid features tickets from €25.30 for residents booking round trips, with the offer ending on September 16 and valid for flights between November 1, 2024, and February 28, 2025. Ryanair, known for successive promotions, currently has the cheapest option at €21.99 for trips to Gran Canaria or Tenerife.

✈️ Air Europa, Spain's fifth-largest and Madrid's second-largest airline in capacity and routes, abandoned a merger with Iberia after IAG withdrew its acquisition attempt on August 1, due to the European Directorate-General for Competition's high demands. The two largest Spanish operators, with significant overlap on 72% (39 of 53) of their routes, including 14 national and 25 international, now compete head-to-head. Mundiplan, launching its second tourism season for seniors, now offers international outings across four continents: Europe, Africa, South America, and Asia. Ryanair was ordered by the European Commission to repay Germany approximately €14 million for receiving illegal state aid through the Frankfurt-Hahn Airport, which must also return €1.25 million.

✈ The Hidalgo family, major shareholders of Air Europa, are pursuing a capital increase to prevent bankruptcy following a failed partnership with Iberia. Air Europa faced a fund deficit of €499.9 million at the end of 2023, which management reduced to €259 million by counting €240 million of a €475 million government bailout as capital. The company has less than four months, until December 31, due to an extended accounting moratorium, to achieve positive equity and avoid dissolution. The Hidalgos' proposal to convert €235 million of state aid into a participatory loan, which would effectively nationalize part of the company, was rejected by SEPI to avoid scrutiny over judicially investigated ties with Begoña Gómez. To avert bankruptcy, the Hidalgos aim for a capital raise around €200 million. They must repay the state rescue funds by November 2026, challenging with total debt at €700 million.

💥 On July 24, in Kathmandu, Nepal, a Bombardier CRJ 900 plane crashed while attempting takeoff, resulting in the death of all 18 passengers, who were employees of the airline. A preliminary report by Nepal's air safety authority blamed the crash on the pilot entering incorrect data into the aircraft's computer, specifically erroneous speeds and weight, leading to loss of lift. The plane, with a weight of 18,500 kg, required different takeoff speeds to be inputted into the computer. The report also faulted the regulator for not adequately overseeing takeoff procedures. The flight permission was granted without proper checks and was incomplete.

✈ Russians are becoming accustomed to living in wartime, leading to an increase in travel. However, Russia's aerospace industry struggles with servicing aircraft in development due to sanctions. Despite this, Rossiya Airlines, part of Aeroflot Group, revived a Boeing 747 400 from storage to fly in the Sakhalin region. On August 30 and 31 and September 1, the airline conducted flights to Yuzhno-Sakhalinsk to transport vacationers. The aircraft, registration RA-73286 with a 522-passenger capacity in a single class, had been grounded for nearly two years since its last flight between Moscow and Sochi. Western sanctions on spare parts impact Russian aviation maintenance.

🚀 The Spanish Air Force has fully operationalized one of three A330s purchased from Iberia, after a major transformation into an A330 MRTT (Multi-Role Tanker Transport). This aircraft arrived at Getafe Aerodrome from Malta on September 2, where it was painted in low-visibility gray. Airbus Defence and Space acquired three A330s from IAG's Iberia in November 2021, including ground equipment for handling services, along with pilot, cabin crew, and maintenance technician training.

✈ Ryanair and other low-cost airlines are the most used in Europe and Spain, even on competitive routes like Madrid-Canaries, Madrid-Balearics, Madrid-London, and Madrid-Berlin. Despite complaints about poor service and high prices, these airlines are growing and have taken 50% of the market from legacy airlines over the past 20 years, with Ryanair becoming the leading airline in Spain.