IAG and Spanish flag carrier Iberia have finalised a deal with Spanish travel firm Globalia on the sale price of Air Europa. Iberia completed the acquisition process of the third-largest airline in Spain yesterday from its parent company Globalia on behalf of IAG (International Airlines Group, which owns Aer Lingus, British Airways, Iberia, FlyLEVEL and Vueling [a Spanish low-cost carrier]) for a total price of €500 million ($607 million). It has been reduced from €1 billion ($1.2 billion), which is the price that the 2 parties had agreed on in November 2019. This is due to the negative economic impact of the coronavirus pandemic on the aviation industry. The costs for this acquisition will be paid for 6 years from now, as it is not possible these days to pay such sums. IAG’s CEO, Luis Gallego, has announced:“It is great that we have reached an agreement with Globalia to postpone the payment until the air transport market has recovered once the pandemic is over and we hope to obtain positives synergies as a result of the purchase.” The contract will be completed by the second half of 2021, even though it was supposed to be completed in mid-2020. The advantage of this acquisition for IAG will result in more competition for passengers at Frankfurt International Airport and Paris Charles De Gaulle between IAG, Lufthansa Group and Air France. Currently, Air Europe only operates 2 destinations from Paris Charles de Gaulle (Malaga and Valencia) and 1 from Frankfurt (Madrid), but it is highly possible that it will expand operations from these airports as a low-cost alternative for travellers to South America, the Caribbean and Spain. Air Europa and Iberia will together operate a fleet of 245 aircraft, of which 95 are narrowbodies and 150 are widebodies, as well as having 10 aircraft orders in common. This does not include Iberia’s low-cost subsidiary, Iberia Express, but does include the fleet of Air Europa Express. 21st of January 2021.