The International Airlines Group (IAG) announced the purchase Air Europa for €1bn.
The IAG group, which owns British Airways and four other European Airlines said it had agreed a cash deal for the Spanish airline, Air Europa.
IAG has agreed to pay Air Europa a break fee of €40 million in the event that the transaction fails to receive the necessary regulatory approvals, and either party elects to terminate the transaction agreement.
The deal is expected to close in the second half of 2020.
Air Europa is the third-largest Spanish airline after Iberia and Vueling, which also owned by IAG group.
Air Europa flies to 69 destinations around Spain, Europe, South America, North America, the Caribbean, and Morocco with a fleet of 66 Aircraft.