International Airlines Group (IAG)

International Consolidated Airlines Group, S.A., often shortened to IAG, is an Anglo-Spanish multinational airline holding company with its operational headquarters in London, England and its registered office in Madrid, Spain. It was formed in January 2011 after a merger agreement between British Airways and Iberia, the flag carrier airlines of the United Kingdom and Spain respectively. As British Airways was the larger company, those holding shares in British Airways at the time of the merger were given 55% of the shares in the new, merged company. British Airways and Iberia ceased to be independent companies and instead became 100% owned subsidiaries of IAG. It is the sixth-largest airline company in the world, producing €22.567 billion revenue in 2016.
On 4 November 2011, IAG agreed in principle to acquire British Midland International (BMI) from Lufthansa for an undisclosed sum, in a deal which would increase IAG's share of slots at Heathrow airport from 45% to 54%. On 22 December 2011, IAG agreed a binding deal with Lufthansa to acquire BMI for £172.5 million. On 30 March 2012, the purchase of BMI was approved, subject to the condition that the combined group divest itself of 12 daily slots and lease two daily slots at Heathrow airport. The acquisition was completed on 20 April 2012, and the BMI fleet and routes were integrated into the British Airways schedule throughout 2012.
On 8 November 2012 IAG made a cash tender offer to buy Vueling, the Spanish low-cost airline based in Barcelona. The offer, was €7 per ordinary share of Vueling with the total cost of acquiring the shares anticipated to be €113m. An increased offer of €9.25 was accepted by the Vueling board on 9 April 2013 and received majority shareholder approval on 23 April 2013. IAG took control of Vueling on 26 April 2013. In December 2012, IAG completed the merger of the cargo operations of British Airways, BMI and Iberia into a single business unit, IAG Cargo.
In January 2015, IAG made an bid of £1 billion for Aer Lingus. This was expected to be accepted, after the rejection of two prior bids. In May 2015, the Irish government agreed to sell its stake in Aer Lingus to IAG, as did the Aer Lingus board in late January 2015. The takeover became irreversible on the 18 August 2015.
In April 2016, it was announced that Qatar Airways increased its shareholding of IAG from 9.99% to close to 12%.
In May 2016, Qatar Airways increased its shareholding to 15.01%.
In March 2017 it was announced that a new low cost longhaul airline named LEVEL was to start operating from Barcelona in June 2017.

Subsidiaries and franchises:

• Aer Lingus
• Aer Lingus Regional (franchise)
• British Airways
• BA CityFlyer
• OpenSkies
• Comair (18% stake)
• SUN-AIR (franchise)
• IAG Cargo (merger between Iberia Cargo and British Airways World Cargo)
• Iberia
• Air Nostrum
• Iberia Express
• Level
• Vueling

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