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IAG makes bid for remaining Vueling shares

IAG makes bid for remaining Vueling shares

International Airlines Group has confirmed it will make an offer to purchase the remaining shares in Spanish low-cost carrier Vueling.

IAG presently controls 46 per cent of the carrier through its subsidiary Iberia. 

IAG - which also operates British Airways - said the deal for the remaining 54 per cent would be funded through internal resources.

The deal is valued at pay €113 million.

IAG chief executive Willie Walsh said: “With its leading position in Barcelona, European growth strategy and low cost base, Vueling has much to offer IAG.

”It has significantly increased capacity while remaining profitable, despite the Spanish economic slowdown, and already has extensive commercial arrangements with Iberia.

“We would plan to retain the current Vueling management team.”

Walsh said Vueling would benefit from the financial strength of a larger airline group, making it better able to compete with other airlines and invest in new customer products and services.

Based in El Prat de Llobregat, near Barcelona, Vueling presently operates a fleet of 59 Airbus planes, offering departures to 51 destinations across Europe.