IAG the parent of British Airways and Spain’s Iberia, is set to close a halved price agreement of its planned 1 billion euro ($1.17 billion) acquisition of Spanish rival Air Europa.
Air Europa’s price tag would be lowered to 500 million. With the acquisition of Air Europa, IAG intends to increase its routes to Latin America and the Caribbean. Since the deal was announced in November, the airline industry has been battling its biggest ever crisis due the impact from the COVID-19 crisis.
Iberia and Globalia, owner of Air Europa, declined to comment.
In June, the Chief Executive Officer IAG had told newspaper El Pais that the company was reviewing its planned acquisition of Air Europa.