Iberia’s purchase of Air Europa and the impact on the ‘Madrid hub’

Several primary hub airports in Europe would like to be recognised as the most significant one connecting that continent with Latin America; Paris Charles de Gaulle and Frankfurt numbered amongst them, and Lisbon. But it has been Madrid that has usually ruled the roost.

Spain's economic recession and its impact on Iberia threatened that position several years ago when the airline cut many of its westbound long haul routes, opening a window of opportunity for competitors.

The recently announced purchase agreement between Iberia (part of IAG) and Air Europa (Globalia), which is scheduled for completion in 2H2020, theoretically alters the balance again in favour of Madrid, but it is not clear yet how the combined airline will accommodate that Latin American region as the larger Iberia seeks to become a '360° hub'.