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Air France-KLM withdraws from the process to purchase stake in Spain's Air Europa

A spokesperson for the Franco Dutch airline group announced on Thursday that Air France-KLM had pulled out of the deal to purchase a stake in the privately owned Spanish airline Air Europa.

The spokesperson for Air France-KLM said that Globalia, the company that controls Air Europa and is controlled by Air France, could not come to an agreement.

Globalia's spokesperson did not respond immediately to a comment request.

German Lufthansa, Turkish Airlines and IAG-owned British Airways have made bids to Globalia for a 20% stake in Spanish airline IAG.

Air Europa, a Spanish airline that connects Madrid to large Spanish cities throughout Europe and Latin America and flies across Spain, is looking to raise money to pay back a loan from the government granted during pandemic.

Airlines are under increasing pressure to consolidate their operations in Europe so that they can better compete against major global competitors from the United States or the Middle East. Many airlines are looking to expand on popular routes in Southern Europe. (Reporting and editing by Inti landauro, Bernadettebaum and Joanna Plucinska)

(source: Reuters)