Bankia sells stake in IAG

29th Jun 2013
Bankia sells stake in IAG

Spanish bank Bankia has sold its 12.1 per cent stake in International Airlines Group (IAG) to institutional investors for €675m, according to reports.

The move, which is being seen as a positive move for IAG, was part of a recovery plan agreed with the government and the European Union as the nationalised lender Bankia seeks to pay back a €24bn European bailout.

IAG was formed in 2011 following a tie-up between British Airways and Iberia, however losses at the group increased this year due to its troubled Spanish carrier.

The owner of Iberia and British Airways reported a net quarterly loss of 630m euros ($820m; £531m) compared with a net loss of 129m euros last year.

Iberia has been struggling amid the economic crisis in Spain and stiff competition from budget carriers.


IAG has been rolling out a plan to cut costs at its Spanish unit aimed at returning the company to a 600m-euro profit by 2015. Workers at the Spanish airline staged two strikes earlier this year over 3,000 job cuts.



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