Air France-KLM offers 300mn euros for 51% in Air Europa, El Confidencial reports

MADRID: Franco-Dutch airlines group Air France-KLM has offered 300 million euros ($326.82 million) for a 51% stake in Spanish airline Air Europa, news website El Confidencial said on Tuesday, citing unnamed sources close to the negotiations.

Air France-KLM, which said in November talks were underway, would also take over Air Europa’s 475 million euro debt owed to the Spanish government, El Confidencial added.

The offer comes one month after two sources with knowledge of the talks told Reuters German rival Lufthansa was considering making an offer for a minority stake in Air Europa. El Confidencial said on Tuesday Lufthansa was offering 240 million euros for a 25% stake.

The Spanish airline is 20% owned by BA-parent IAG, which backed out of taking full ownership last year due to regulatory concerns.

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Air Europa, owned by Spanish family group Globalia, flies within Spain and between Madrid and large cities in Europe and Latin America.

A spokesperson for Air France-KLM declined to comment, while Globalia did not immediately respond to request for comment. Lufthansa declined to comment.