MADRID (Reuters) -Air France-KLM has pulled out of the process to buy a stake in Spanish privately owned airline Air Europa, a spokesperson for the Franco-Dutch airline group said on Thursday. Air
Air France-KLM pulls out of process to buy stake in Spain's Air Europa
MADRID (Reuters) -Air France-KLM has pulled out of the process to buy a stake in Spanish privately owned airline Air Europa, a spokesperson for the Franco-Dutch airline group said on Thursday.
Air France-KLM could not reach an agreement with Globalia, which controls Air Europa, the spokesperson said.
A spokesperson for Globalia did not immediately respond to a request for comment.
Germany's Lufthansa and Turkish Airlines have approached Globalia to present bids for a stake in the Spanish airline, which is 20% owned by British Airways owner IAG.
Lufthansa CEO Carsten Spohr said the airline was still in the race, though talks were complex.
"I cannot yet give an answer whether it will fail or not. I can confirm that it is very difficult to get this to a success," he said in a call with analysts and investors.
He confirmed his company was interested in Portugal's TAP.
Air Europa, which flies within Spain and connects Madrid with large Spanish cities in Europe and Latin America, seeks to raise cash to repay a government loan.
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.
(Reporting by Joanna Plucinska and Andres Gonzalez; Editing by Inti Landauro and Bernadette Baum)
