IAG and Air Europa *

Air Europa could still become part of IAG (International Airlines Group) but not for the time being.

The protracted deal is likely to take at least another 18 months to complete the Group’s Chief Executive Luis Gallego told an economic forum in Madrid.

“The ultimate goal is the acquisition of Air Europa, which is how it all started in 2019. We have to decide on a timeline to take 100%, but I think it could take at least 18 months”, Gallego said during the Wake Up Spain event.

IAG will need to secure approvals in several countries to allay monopoly concerns, the CEO added. He declined to speculate on how much IAG would be willing to pay for Air Europa.

Spain’s government has also been involved in the talks since it approved its €475m bailout for Air Europa in November 2020, part of which can be converted into equity.

At the event, Gallego said that IAG expects to operate at 90% of its pre-pandemic capacity this summer, with a 100% recovery in seats in the North Atlantic market and 95% on routes to Latin America.

www.iairgroup.com

www.aireuropa.com

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OUR READERS' FINEST WORDS (All times and dates are GMT)

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Julian Smith, Harrogate, Yorkshire

What is IAG trying to do? As a very minor shareholder what I want is the shares to returning to the price I paid for them. Then I will get out.