British Airways owner IAG is buying Spain's Air Europa.
The deal is valued at just over 600 million dollars - a price slashed in half by the past year's travel slump.
Under the amended agreement, the money won't have to be paid until the sixth anniversary of the acquisition.
Air Europa has been supported by state-backed loans during the recent travel turmoil.
Over the year, IAG had confirmed an intention to buy the airline, but it too was struggling with pinched finances.
The two have renegotiated the deal as a result.
IAG boss Luis Gallego hopes the tie-up will its Madrid hub with new services to Latin America.
It's also intended to generate cost savings.
IAG shares were up around 1% in early trade Wednesday (January 20).