Lufthansa Group and Air France-KLM have ended discussions regarding acquiring a stake in Air Europa, primarily due to disagreements over the Hidalgo family’s €1bn bvaluation.
Both airline groups were interested in acquiring a portion of Air Europa, with Air France-KLM considering a 51pc stake at one point.
Air Europa recorded €116m gross profit on revenues of €2.9bn last year, despite being burdened by substantial debt, including a €475m loan from Spain’s SEPI.
The Spanish government’s decision to provide financial support to Air Europa has faced scrutiny, with claims of political favoritism and conflicts of interest in the loan approval process.
Globalia owns 80pc of Air Europa, while IAG International Airlines Group retains the remaining share, having previously attempted to acquire Air Europa before abandoning those plans.
