Latest news with #AirFranceKLM
Zawya
9 hours ago
- Business
- Zawya
Turkish Airlines explores Air Europa stake as bid deadline looms
Turkish Airlines is exploring making a bid for a minority stake in Air Europa, the latest carrier to express interest in the Spanish airline, according to two sources with knowledge of the deal, with binding bids due in the coming weeks. Interested investors have been asked to submit binding bids by early July, one of the sources and two more said. The sources declined to be identified because the terms are confidential. Turkish Airlines' consideration of a bid is significant as there are few examples of carriers outside Europe buying shares in players in the region. The interest has been reported by Spanish online newspaper El Espanol. The deadline for binding bids has not previously been reported. Air France KLM and Lufthansa are also in talks with Globalia, the holding company of the family Hidalgo that founded the company, about buying a stake, Reuters reported previously. The airline makes just over a quarter of its revenues from Europe. It has a codeshare agreement with Air Europa. Turkish Airlines did not immediately respond to requests for comment, while its shareholder Turkey's Wealth Fund declined to comment. A representative for Globalia and the Hidalgo family said they did not want to comment on an ongoing operation because of confidentiality issues. Lufthansa declined to comment. An Air France-KLM spokesperson said the airline is interested in reinforcing its longstanding cooperation with Air Europa. NEXT PHASE OF LONG PROCESS Binding bids would mark the next phase of a prolonged sale process as Air Europa seeks to raise cash to repay a government loan granted during the pandemic. A previous plan had aimed for binding bids in May, two of the sources said. The process has faced delays due in part to disagreements between members of the Hidalgo family and concerns from interested airlines on the structure of the deal, according to the two sources and a fourth one said. The interested parties are working with advisers to structure bids in the hope that buying a minority stake of about 20% may put them in a better position to take control of the airline in the future, the two sources added. Some potential suitors have expressed concern over a lack of clarity about how they may be able to do that, according to the fourth person with knowledge of the talks. Last year, BA-owner IAG which has a 20% stake, abandoned a deal to take full ownership of the airline after regulators raised issues over competition given its ownership of Spanish carrier Iberia. It also owns Vueling and Aer Lingus. Pressure has mounted on airlines to consolidate in Europe to better compete with major global rivals from the United States and the Middle East. Many are focusing on the most popular routes in southern Europe as a target for expansion. Air Europa flies within Spain and between Madrid and large cities in Europe and Latin America. (Reporting by Andres Gonzalez and Joanna Plucinska; Additional reporting by Ceyda Caglayan in Istanbul and Inti Landauro in Madrid; Editing by Josephine Mason and Barbara Lewis)
Yahoo
10 hours ago
- Business
- Yahoo
Exclusive-Turkish Airlines explores Air Europa stake as bid deadline looms
By Andres Gonzalez and Joanna Plucinska LONDON (Reuters) -Turkish Airlines is exploring making a bid for a minority stake in Air Europa, the latest carrier to express interest in the Spanish airline, according to two sources with knowledge of the deal, with binding bids due in the coming weeks. Interested investors have been asked to submit binding bids by early July, one of the sources and two more said. The sources declined to be identified because the terms are confidential. Turkish Airlines' consideration of a bid is significant as there are few examples of carriers outside Europe buying shares in players in the region. The interest has been reported by Spanish online newspaper El Espanol. The deadline for binding bids has not previously been reported. Air France KLM and Lufthansa are also in talks with Globalia, the holding company of the family Hidalgo that founded the company, about buying a stake, Reuters reported previously. The airline makes just over a quarter of its revenues from Europe. It has a codeshare agreement with Air Europa. Turkish Airlines did not immediately respond to requests for comment, while its shareholder Turkey's Wealth Fund declined to comment. A representative for Globalia and the Hidalgo family said they did not want to comment on an ongoing operation because of confidentiality issues. Lufthansa declined to comment. An Air France-KLM spokesperson said the airline is interested in reinforcing its longstanding cooperation with Air Europa. NEXT PHASE OF LONG PROCESS Binding bids would mark the next phase of a prolonged sale process as Air Europa seeks to raise cash to repay a government loan granted during the pandemic. A previous plan had aimed for binding bids in May, two of the sources said. The process has faced delays due in part to disagreements between members of the Hidalgo family and concerns from interested airlines on the structure of the deal, according to the two sources and a fourth one said. The interested parties are working with advisers to structure bids in the hope that buying a minority stake of about 20% may put them in a better position to take control of the airline in the future, the two sources added. Some potential suitors have expressed concern over a lack of clarity about how they may be able to do that, according to the fourth person with knowledge of the talks. Last year, BA-owner IAG which has a 20% stake, abandoned a deal to take full ownership of the airline after regulators raised issues over competition given its ownership of Spanish carrier Iberia. It also owns Vueling and Aer Lingus. Pressure has mounted on airlines to consolidate in Europe to better compete with major global rivals from the United States and the Middle East. Many are focusing on the most popular routes in southern Europe as a target for expansion. Air Europa flies within Spain and between Madrid and large cities in Europe and Latin America.
Reuters
10 hours ago
- Business
- Reuters
Exclusive: Turkish Airlines explores Air Europa stake as bid deadline looms
LONDON, June 20 (Reuters) - Turkish Airlines is exploring making a bid for a minority stake in Air Europa, the latest carrier to express interest in the Spanish airline, according to two sources with knowledge of the deal, with binding bids due in the coming weeks. Interested investors have been asked to submit binding bids by early July, one of the sources and two more said. The sources declined to be identified because the terms are confidential. Turkish Airlines' consideration of a bid is significant as there are few examples of carriers outside Europe buying shares in players in the region. The interest has been reported by Spanish online newspaper El Espanol. The deadline for binding bids has not previously been reported. Air France KLM ( opens new tab and Lufthansa ( opens new tab are also in talks with Globalia, the holding company of the family Hidalgo that founded the company, about buying a stake, Reuters reported previously. The airline makes just over a quarter of its revenues from Europe. It has a codeshare agreement with Air Europa. Turkish Airlines ( opens new tab did not immediately respond to requests for comment, while its shareholder Turkey's Wealth Fund declined to comment. A representative for Globalia and the Hidalgo family said they did not want to comment on an ongoing operation because of confidentiality issues. Lufthansa declined to comment. An Air France-KLM spokesperson said the airline is interested in reinforcing its longstanding cooperation with Air Europa. Binding bids would mark the next phase of a prolonged sale process as Air Europa seeks to raise cash to repay a government loan granted during the pandemic. A previous plan had aimed for binding bids in May, two of the sources said. The process has faced delays due in part to disagreements between members of the Hidalgo family and concerns from interested airlines on the structure of the deal, according to the two sources and a fourth one said. The interested parties are working with advisers to structure bids in the hope that buying a minority stake of about 20% may put them in a better position to take control of the airline in the future, the two sources added. Some potential suitors have expressed concern over a lack of clarity about how they may be able to do that, according to the fourth person with knowledge of the talks. Last year, BA-owner IAG (ICAG.L), opens new tab which has a 20% stake, abandoned a deal to take full ownership of the airline after regulators raised issues over competition given its ownership of Spanish carrier Iberia. It also owns Vueling and Aer Lingus. Pressure has mounted on airlines to consolidate in Europe to better compete with major global rivals from the United States and the Middle East. Many are focusing on the most popular routes in southern Europe as a target for expansion. Air Europa flies within Spain and between Madrid and large cities in Europe and Latin America.
CNN
a day ago
- Business
- CNN
Air France-KLM CEO on What It's Like Negotiating with Former Colleagues
Air France-KLM CEO Ben Smith discusses what it's like negotiating with former colleagues following his airline's partnership with Indigo.
Kuwait Times
a day ago
- Business
- Kuwait Times
Transatlantic airfares slump as West Europeans skip US travel
Summer airfares from Europe to US drop to pre-pandemic levels NEW YORK: Airfares from Europe to the United States have dropped to rates not seen since before the pandemic, as travelers from Western Europe lead a pullback in travel to the US that is expected to continue through at least July. Overseas arrivals to the United States fell 2.8 percent in May from a year ago, according to preliminary data from the US National Travel and Tourism Office within the US Department of Commerce. Travel from Western Europe fell 4.4 percent in May although travel from Eastern Europe rose 4.6 percent in the same period. Forward bookings suggest sustained declines are on the horizon, with total inbound bookings to the US in July down 13 percent year-over-year, according to OAG Aviation, an analytics firm. Transatlantic airfare has been declining since the first quarter when Europeans started reconsidering travel to the US after President Donald Trump suggested annexing Greenland, launched a global trade war, and issued orders that focus on stricter border policy. A stronger dollar has also deterred some trips. In March, travel from Western Europe fell 17 percent year-over-year, according to the NTTO. Average round-trip economy airfares for over 50 routes from the US to Europe in the first quarter were down an average of 7 percent year-over-year, with rates to fly between Atlanta, Georgia, and London, down 55 percent, according to data from Cirium, an aviation analytics firm. As American consumers have been bargain-hunting and waiting closer to their departure dates to finalize travel plans, the decline in demand from Europe is another factor contributing to cheaper travel. 'Fewer seats filled by European travelers to the US, and a slower pace of growth in US outbound to Europe than last year, will tend to cast 2025 as a tougher year to make money on transatlantic routes,' said Aran Ryan, director of industry studies at Tourism Economics, a subsidiary of Oxford Economics. This summer, the price of round-trip tickets from the US to Europe is down 10 percent compared with a year ago, travel booking app Hopper said. Average fares of $817 per ticket are in line with prices to Europe in the summer of 2019 before the pandemic. Major carriers, including Air France KLM and Germany-based Lufthansa, expect slowing activity. Lufthansa CEO Carsten Spohr said the company expects weaker demand in the third quarter, while Air France KLM CEO Ben Smith said the company is seeing a 'slight pullback' in transatlantic traffic and will slash prices to keep cabins on its transatlantic flights full. Airlines including Lufthansa and US air carrier United Airlines say higher demand from US travelers flying to Europe is offsetting the decline of Europeans flying the opposite direction. United said international bookings from Europe fell 6 percent in the first quarter, but added that US-originating demand made up for the pullback. Rival Delta Air Lines said 80 percent of its long-haul international demand originates from the US, and fares in the region are 'significantly higher' than in the rest of the world. Lufthansa said it plans to market its transatlantic flights to more Americans given the higher demand, despite travel from Western Europe showing moments of recovery. Travel from the region to the US increased 12.1 percent in April before falling again in May, according to data from the NTTO. As of mid-May, there are 4.3 percent more international flights scheduled to depart from US airports for international destinations this summer, said Hopper. 'We feel really good about the transatlantic market,' American Airlines CFO Devon May said at a Wolfe Research transportation and industrials conference in May. — Reuters
