Strategic Meetings Summit London, 26 September,
September 29 2022, Kimpton Fitzroy London
Friday 30 September 2022, JW Marriott Grosvenor
British Airways’ owner IAG has raised €390 million from investors to pay for its acquisition of Vueling and to improve its finances.
IAG last month acquired a majority stake of 90.51 per cent in the Spanish carrier for €123.5 million or €9.25 per share. IAG had previously held a 45.85 per cent shareholding in Vueling.
The company plans to pay for the Vueling purchase by issuing $390 million of convertible bonds to investors which will mature in May 2018.
Willie Walsh, IAG’s chief executive, said: "We are raising cash to fund our acquisition of Vueling, an airline that will be a great addition to IAG. It will also enable IAG to have cash available to improve general liquidity and improve the credit profile of the group.”
Walsh has confirmed that Barcelona-based Vueling will continue to operate as a standalone carrier under CEO Alex Cruz rather than being integrated into sister carrier Iberia.
He added that Vueling had “opportunities to grow its business” across several markets including the UK.
“Vueling does have a presence at Gatwick and we would clearly like to increase that if and when it’s appropriate for them,” said Walsh.
Walsh added that he “did not see any further opportunities” for further acquisitions by IAG.
“We don’t have any proposals to do anything,” he said. “It’s clear that there are a lot of airlines in play but most of those are peripheral airlines and I cannot see them adding any value to IAG or for anybody else.”