Lufthansa and Air France-KLM are in a fierce battle to acquire a 20% stake in Air Europa, facing competition from global airlines in a high-stakes takeover race.

Lufthansa and Air France-KLM are vying for a 20% stake in Air Europa, each aiming to strengthen their position in the European aviation market.To strengthen its bid, the French airline has partnered with Société Générale, aiming to secure a deal with Globalia, the parent company of Air Europa. Globalia is majority-owned by the Hidalgo family (80%), while the remaining 20% is controlled by International Airlines Group (IAG), the parent company of Iberia.

One of the main reasons for selecting Société Générale is the bank’s prior involvement in evaluating Air Europa’s acquisition. Previously, when Hainan Airlines, a Chinese carrier, attempted to buy 100% of the Spanish airline, Société Générale was part of the assessment process. This experience positions the bank well to support Air France-KLM in its current bid.

Industry experts believe this move is also a strategic effort to prevent a Chinese entity from gaining a foothold in a European airline. Allowing non-European investors into the shareholder structure could introduce regulatory challenges and complicate the airline’s long-term stability. By acting now, Air France-KLM aims to secure a more favorable outcome.

However, the competition is fierce, with Lufthansa emerging as a strong rival. The German airline has already partnered with ITA Airways and completed discussions to acquire a stake in Air Europa. This gives Lufthansa a solid position in the race.

Other major players, including Delta Air Lines and Etihad, have also expressed interest in Air Europa. Both airlines remain in the running, adding more complexity to the bidding process. Their involvement suggests that Air Europa is an attractive asset on the international aviation market.

Despite multiple bidders, the Hidalgo family, which controls Globalia, has consistently shown a preference for a European buyer. This factor could ultimately influence the final decision, potentially giving Air France-KLM or Lufthansa an advantage over non-European competitors.

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