IAG buys “Air Europa”

International Airlines Group, the parent company of British Airways and Spain’s Iberia, has agreed to buy Air Europa for €1bn, Report informs referring to the Financial Times.

The London-based group is betting the deal will establish Madrid as one of Europe’s premier airports, able to rival Amsterdam, Frankfurt, London Heathrow and Paris. It would also open up new routes to Latin America and the Caribbean market, and give IAG a 26 per cent share in the Europe to Latin American market, up from 19 per cent.