British Airways group to buy Air Europa .
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International Airlines Group, the parent company of British Airways and Spain’s Iberia, has agreed to buy Air Europa for €1bn, as it seeks to open up the South American transatlantic market and turn Madrid into Europe’s next hub airport. The acquisition drew immediate fire from Michael O’Leary, Ryanair chief executive, who said: “I think it’s a good deal for IAG, for [its chief executive] Willie Walsh. I think it’s a bad deal from a competition point of view.” IAG said in a statement to the stock exchange on Monday that it had agreed a cash deal for the Spanish airline, which offers domestic and international flights to 69 destinations with its fleet of 66 aircraft, including long-haul routes to the Americas.