A previous version of this report incorrectly identified the company that owns Air Europa. The story has been corrected.
International Consolidated Airlines Group SA said Monday that it was buying Air Europa from Globalia Corporacion Empresarial, S.A. for 1 billion euros ($1.11 billion) in cash.
The airline group
, which houses British Airways and Iberia among others, said that it expects to complete the transaction in the second half of 2020, after receiving the relevant approvals.
“Acquiring Air Europa would add a new competitive, cost effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership, therefore generating additional financial value for our shareholders,” Chief Executive Willie Walsh said.