British Airways’ owner will buy a Spanish budget airline for half the price it initially agreed to pay.
IAG will purchase Air Europa for £450million and also defer the payment until 2026 – easing the pressure on its finances as it tries to survive the Covid crisis.
The group agreed to buy the carrier for £900million in November 2019.
IAG will buy Air Europa for £450m and will also defer the payment until 2026 – easing the pressure on its finances as it tries to survive the Covid crisis
But IAG came under fire for pursuing the takeover during the pandemic and has spent months trying to reduce the price.
The two firms have reached a final deal, according to local media reports.
IAG has been especially hard hit this year because BA makes much of its income through transatlantic flights, which have been among the routes most severely affected by the coronavirus pandemic.
The BA-owner argues the Air Europa takeover will give its existing airlines in the country – Iberia and Vueling – dominance at the country’s largest airport, Madrid Barajas, and on routes to South America.
The company’s Spanish arm has become increasingly influential in the airline conglomerate, which also owns Ireland’s Aer Lingus.
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