The relationship between Globalia and International Airlines Group (IAG) is obscured. Very far is that a surprise agreement by which Air Europe was integrated into Iberia prior payment of 1,000 million euros (The group of Iberia purchase Air Europe by 1,000 million).
According to a report in The Confidential, both companies have been locked in a battle of accusations via bureaufax. On the one hand, the holding company led by Iberia and British Airways believes that Air Europa is trying to hide the economic situation that crosses. Meanwhile, the airline of Globalia understand that you are trying to hinder the operation to force his bankruptcy.
Sources close to the operation point out that the mistrust between the two has grown in the last few weeks, especially after IAG fail to comply with the procedure of sending to the competition authorities of the European Commission the documentation necessary for emitiesen your opinion. Iberia clarifies that the delay is because Brussels has requested additional information.
In these moments, always according to the aforementioned means, the companies will speak mainly through their legal teams via bureaufax. For this reason, in case of breach of the agreement, these communications can be used to claim damages for part of Globalia or to request a considerable reduction of 1,000 million quoted by the part of IAG (including the cancellation of the acquisition by a force majeure) (Air Europe: the small print of an operation historical).
Iberia may qualify under the so-called ‘rebus sic stantibus’
Sources close to Iberia argue that the relationship with Air Europa is cordial and that the strategic interest in the operation is still on foot. However, they recognize that they can maintain the conditions agreed to last November 3 because Air Europe is now in a different situation. This situation could result in the application of the preconcurso of creditors, as has been done in other sector companies, including a subsidiary of IAG.
Both Iberia and Air Europe are in a very delicate situation, losing millions of euros each day. The difference is that the first, with the financial support of the IAG, that faces this crisis with a strong cash position, while the second does not have the cushion of Globalia.
According to internal calculations, Air Europa believes right now that you may end up by 2020 with the loss of 380 million euros. A disability that does not occur, the acquisition by Iberia, will be forced to go to the preconcurso of creditors. For this reason, the CEO of Globalia, Javier Hidalgo, would be demanding to IAG that meets with the agreement, but the british group considers that it cannot pay a price for something that today is a bag of red numbers that will not recover until 2023, as said Hidalgo’s father.
Iberia would be, weighing the benefit to the so-called ‘rebus sic stantibus’ clause legal entity that allows a company to renege on certain commitments by a cause of force majeure, as is the current pandemic.