Fusiones y Adquisiciones

💥 On Saturday in Sao Paulo, the ATR72-500 from Voepass Airlines crashed, killing all 62 passengers. Theories suggest wing icing or propeller position error as possible causes, awaiting black box data. Despite the crash, Voepass, formerly Passaredo Linhas Aéreas, was named the safest airline in Latin America in 2014. Voepass has a fleet of 11 ATR72s; the crashed aircraft was relatively new with 20 years of service left and had previously flown in Poland, Denmark, and Italy.

🚀 On a recent morning, Air Europa's new Boeing 787-9 Dreamliner landed at Adolfo Suárez Madrid-Barajas Airport at 9:23 AM, as reported by Flight Radar. The plane arrived from Everett, home to the American manufacturer. With this addition, Air Europa now operates 26 Dreamliners, with plans to incorporate three more soon and additional Boeing 737s. The airline aims to reach a fleet of around 60 units by early 2025, slightly below the pre-pandemic peak of 62 aircraft.

🛩 Comac, the state-owned Chinese aircraft manufacturer, has introduced variants of its C919 aircraft, a competitor to the Airbus 320 and B737, including a shorter version for 140 passengers suitable for high-altitude airports, and a stretched version seating 210 passengers, slightly fewer than the Airbus A321. While both concepts have been showcased internationally, mass production and orders have not yet started.

✈ Wamos Air acquired by Wamos Executive and Abra Group, the latter parent of Avianca and Gol. The National Commission of Markets and Competition (CNMC) approves the acquisition, confirming no threat to competition, as there are no significant horizontal overlaps and only minor vertical overlaps. Wamos Air, with over 20 years of history, will maintain its leadership team, including Enrique Saiz, and will continue to operate independently, focusing on global customer service.

✈ Madrid's Adolfo Suárez Madrid-Barajas Airport boasts the most direct routes to major Latin American cities of any European airport. Iberia's now-failed project to absorb Air Europa aimed to transform its Madrid hub into a mega-hub, rivaling those in Paris-Charles de Gaulle and Frankfurt, to bridge the Americas and Asia. The integration would have facilitated easier connections from Latin America to Asia.

🛫 Margrethe Vestager, Danish EU Commissioner since 2014 and former Deputy Prime Minister, has twice blocked the merger of Spain's two largest airlines, Iberia and Air Europa, at Madrid's Adolfo Suárez Airport, where they would have controlled about 60% market share. The decision maintains Barajas Airport as a second-tier hub compared to Paris and Frankfurt. Despite concessions from Iberia, concerns over higher fares and post-service issues prevent the creation of a Spanish airline giant, fostering an eternal duopoly with Iberia and Air Europa. Air Europa, backed by the Spanish State as a creditor and potential shareholder, can survive financial turmoil, while IAG's five-year effort to develop a significant hub in Madrid like British Airways has in London-Heathrow remains unfulfilled.

🛫 Air Europa, led by Juan José Hidalgo, faces financial challenges with its potential profitability overshadowed by debts of nearly €1 billion, including a €240 million state loan that may convert to equity. Hidalgo must coexist with Iberia, which holds a 20% stake, and the possibility of SEPI involvement, further complicating prospective acquisitions by Air France-KLM or Lufthansa due to the lack of apparent operational value and market concerns, despite Hidalgo's successful divestments of other Globalia divisions.

🛫 Wizz Air, Hungary's low-cost airline, projects 2023 revenues of €350-450 million, falling short of the expected €500-600 million. This resulted in an 18% stock market value drop, the largest since the pandemic. To maintain service on popular routes, the airline leased planes with crews due to Pratt & Whitney engine repairs, incurring significant costs. The engine manufacturer may cover some losses, with issues persisting for 2-3 years. CEO Joszef Varadi anticipates ceasing plane rentals by summer's end, lessening financial impact.

🏩 Juan José Hidalgo, presidente de Globalia, expressed joy over the failed acquisition of Air Europa by Iberia, which he sees as beneficial for competition in Spain and specifically Madrid. The nearly five-year negotiation concluded without a deal, which Hidalgo believes will save Spanish citizens money. He promises Air Europa will continue to compete with IAG, who has received government support. Hidalgo states Air Europa will repay its ICO loan soon, holds over €250 million in bank funds, and plans to renew its fleet, including adding 787-900 aircraft and updating 737-800s, forecasting the repayment of SEPI debt within two to three years.

🛫 Iberia's strategy to integrate Air Europa aimed to boost Barajas as a hub to Asia. Geopolitical tensions, such as wars between Russia and Ukraine, conflicts involving Israel, Hamas, and Hezbollah, and China's economic slowdown, challenged the project's immediate viability. European airlines' flights to Asia are hindered by Russia's airspace closure, giving Asian airlines a competitive edge. Iberia surprised with new routes to Doha and a return to Tokyo on October 27, 2024, after ceasing operations in 2020 due to the pandemic. However, the Russian invasion of Ukraine, turmoil in the Middle East, and China's economic fragility pose obstacles to Madrid Airport's growth as a hub between America and Asia.