Takeover will help boost IAG’s short-haul business
Spain’s stockmarket regulator has confirmed that International Airlines Group, owner of British Airways and Iberia, has achieved enough backing from investors in the Spanish low-cost carrier Vueling to take control of it. Following a takeover bid that valued Barcelona-based Vueling at €277 million, IAG now raises its stake from 46% to around 90%.
Although IAG is trying to find ways to dismiss more than 3,000 Iberia employees and cut salaries in an effort to return the Spanish flag carrier to profitability, its chief executive Willie Walsh insists that the company will not merge the two Spanish airlines.
However, Reuters maintains that “the takeover should help IAG boost its short-haul business and Vueling’s profits will help offset the group’s losses in Spain”.
[photo courtesy Vueling]