IAG targets full control of Vueling (Financial Times-UK)
November 8, 2012
International Airlines Group said on Wednesday that it was considering seeking full ownership of Vueling, the Spanish low-cost carrier.
Analysts said the potential move was part of its efforts to try to improve the competitiveness of Iberia, its Spanish subsidiary.
IAG was formed by the merger of British Airways and Iberia in 2011. The group expects to report an operating loss this year because of the Spanish unit’s problems.
Iberia reported an operating loss of €263m in the six months to June 30 and Willie Walsh, IAG chief executive, is set to reveal a far-reaching restructuring of the airline on Friday that unions fear could involve thousands of job losses.
Iberia owns 46 per cent of Vueling, which has a market capitalisation of €171m.
IAG said it could “confirm that it is considering making an offer for 100 per cent of the share capital of Vueling”, adding that its board would consider the matter on Thursday.