Aer Lingus owner IAG cuts Air Europa deal to €500m

Airline group had originally agreed to pay €1bn in November

Aer Lingus and Iberia owner International Airlines Group has agreed to buy Spain's Air Europa for €500 million under an amended deal, the companies said in a statement on Tuesday.

The new price is a significant reduction from the original equity value of €1 billion.

Payment will be deferred until the sixth anniversary of the acquisition’s completion, according to the statement.

After originally agreeing to buy Air Europa for €1 billion in November 2019, IAG has been pushing to cut the price as the coronavirus pandemic threw the airline industry into crisis.

International travel restrictions have brought the global transport sector to a grinding halt, pushing several airlines to rely on state aid.

The statement said the completion of the deal was expected to take place in the second half of 2021 and the acquisition would be subject to approval by the European Commission. – Reuters