Air Europa, established in 1979 and ceasing operations in 1991, was an entirely independent airline founded in 1978 under the working title Inter European Airways. The airline company was headquartered in Reigate, Surrey, and later in Crawley, West Sussex.

The primary operating base for the airline was London Gatwick Airport, where it commenced commercial airline operations in May 1979. Its initial fleet consisted of three new Boeing 737-200 Advanced jet aircraft.

Errol Cossey and Martin O’Regan, along with two former Dan-Air executives, were the masterminds behind the airline. Harry Goodman played a crucial role as the airline’s primary private financial backer and currently serves as the chairman of International Leisure Group, the parent company of both entities.

During the 1980s, the airline became a leading supplier of charter seats to Intasun Leisure, which, over the decade, grew to become the second-largest tour package tour operator in the UK.

The 1980s also saw significant expansion for the airline, including a substantial presence on short-haul European trunk routes originating and terminating at London Gatwick. Toward the end of the decade, it became the first non-state-incepted airline to achieve a pan-European presence. This expansion involved setting up subsidiaries across Europe and acquiring two smaller airlines, ultimately forming the core of a new regional airline subsidiary called Air Europa Express.

Unfortunately, the UK-based subsidiary, Air Europa, filed for bankruptcy on March 8, 1991.

History

Starting in the 1950s, the UK package tour industry exhibited cyclical trade patterns, with major growth periods occurring in the mid-1960s and early 1970s. However, a significant contraction followed during the mid-1970s due to the 1973 oil crisis. Renewed expansion emerged in the latter half of the 1970s.

A Departure from Tradition in the Charter Airlines Industry

Errol Cossey, responsible for the airline’s operations, successfully oversaw the introduction of new jet aircraft types into Dan-Air’s fleet. Air Europa adopted a unique approach by waiting for other operators to place their business with Dan-Air before securing contracts, slotting in aircraft and crews whenever available.

Long-term Strategic Planning

Cossey rejected the use of second-hand fleets, ephemeral expansion, and variable food quality, which were common practices from the late 1940s to the early 1960s. Dan Air undertook some opportunistic risks, resulting in diversification across various sectors that did not yield a profit. Despite this, Dan justified its strategy due to the low marginal cost attributed to readily available aircraft crews.

Dan's long-term strategic plan aimed to:

Inception

The airline became the first British charter airline to employ new aircraft and provide services and meals comparable to those offered by scheduled carriers. Due to the seasonality of the package tour industry, the airline needed high capacity throughout the June-September peak season and had to secure upfront finances for deposits to secure the delivery slots of three brand-new aircraft.

In the late 1970s, financiers were initially reluctant to provide start-up capital for newly established airlines. The airline's maiden commercial air service took place on May 4, 1979, with the delivery of its second aircraft to Gatwick on the same day. Remarkably, Air Europa became the first UK charter airline to achieve profitability within its very first year of operation.