Airline giant IAG gets Air Europa on cheap over Covid-19

British Airways owner IAG on Wednesday said it would pay only half the agreed purchase price of Spain’s Air Europa, and not for more than six years, as the sector is ravaged by the coronavirus.

IAG will pay 500 million euros ($606 million) to Air Europa-owner Globalia, down on the initial 1.0-billion-euros price tag agreed in November 2019.

“IAG and Globalia today announce that they have amended the original agreement,” the pair said in the statement.

“The parties have agreed that the amount to be paid… will be reduced from an equity value of 1.0 billion euros to 500 million euros with payment deferred until the sixth anniversary of the acquisition’s completion.”