IAG Moves on Purchase of Air Europa at Discounted Price | Aviation International News

IAG Moves on Purchase of Air Europa at Discounted Price

The group will pay only half of the price upon which it initially agreed and will defer payment for six years.

Spain's Iberia will buy Air Europa on behalf of parent company IAG for €500 million in cash. (Photo: Iberia)

By Cathy Buyck • Contributor - Europe

January 20, 2021

British Airways and Iberia parent International Airlines Group (IAG) is moving ahead with the planned acquisition of Air Europa in spite of Covid-19, though the pandemic and the collapse in air travel has cut the purchase price in half. Iberia—which will buy Air Europa on behalf of IAG—will pay only €500 million ($607 million) for its Spanish rival, down from the €1 billion in cash to which the parties agreed when they announced the deal in November 2019. In addition, Iberia will defer payment until the sixth anniversary of the acquisition’s completion. The parties expect to complete the contract by the second half of 2021, IAG noted in a statement Wednesday.

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