Air France-KLM is said to be in talks to acquire a stake of up to 20% in Air Europa, after IAG SA's planned takeover of the Spanish carrier fell through due to regulatory issues.
The potential deal is valued at over €100 million ($105 million) and reportedly does not require approval from the European Union.
An Air France spokesperson declined to comment on the stake purchase but confirmed ongoing negotiations for commercial cooperation with Air Europa.
This development underscores Air France-KLM's strategic interest in expanding its presence in the Spanish market amid changing dynamics in the airline industry.