British Airways Parent Abandons Air Europa Pursuit Once More

  • Airline group will hold onto 20% stake in Spanish carrier
  • CEO says company will consider other acquisition targets
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British Airways parent IAG SA said it’s abandoning a plan to buy Air Europa, the second time it tried unsuccessfully to take over the Spanish carrier, after finding that regulatory opposition didn’t provide a viable path to completing the transaction.

The company will pay Air Europa parent Globalia €50 million ($53.9 million) as a termination fee and will be left holding a 20% minority equity stake in Air Europa acquired two years ago, according to a statement on Thursday.