Lufthansa is apparently in talks about a minority stake in the Spanish airline Air Europa. According to a report in the Spanish newspaper "El Economista", the deal involves acquiring a stake of around 20 percent. There has been no official statement from Lufthansa so far.
Air Europa has been looking for a new partner since the failed takeover attempt by British Airways parent company IAG. The EU Commission had expressed concerns about the full integration into the IAG Group, which already includes Iberia and Vueling. The airline also has to repay state Corona aid amounting to 475 million euros and therefore needs fresh capital.
Lufthansa is pursuing strategic goals with a possible investment. Air Europa has a strong route network to South America and a competitive cost structure. The German group, which recently acquired a stake in ITA Airways, could expand its presence in the South American market with an investment. In addition to Air Europa, investments in Air Baltic and TAP Air Portugal are also being examined as possible next steps.
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