British Airways owner considers selling big stake in Palma airline

Air Europa being courted by other airlines

Mallorca based airline.

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British Airways-owner IAG will consider selling its 20 percent stake in Mallorca-based Air Europa as the Spanish airline's owner continues talks with Air France-KLM and Lufthansa to sell a stake in the company.

"It's something that we are going to decide when (Globalia) take a decision about what they do with the company. We can stay or we can leave," IAG CEO Luis Gallego told Reuters.

IAG scrapped a deal to buy Air Europa last year after it couldn't convince EU competition regulators that its proposed remedies were sufficient.

Air Europa is based in Lluchmajor on the outskirts of Palma and is one of the leading airlines in Spain. It employs hundreds of people on the island.