IAG to invest €6 billion in Spain over next five years to introduce new lower-emission aircraft, among other goals

IAG new

Link Securities| The holding company IAG plans to invest €6 billion in Spain over the next five years to renew its fleet and advance its commitment to decarbonisation, Expansión newspaper reported on Friday. This is one of the messages conveyed by the airline group’s CEO, Luis Gallego, to Prime Minister Pedro Sánchez at their meeting in La Moncloa. IAG has already invested another €5 billion in the last five years.

Specifically, the British Hispanic group wants to focus on introducing new aircraft that emit less than the aircraft they replace, on improving the customer experience, on innovation to transform the business and on the purchase of alternative fuels (SAF), so that these represent 10% by 2030, in accordance with IAG’s commitment, which is four points above the EU mandate for the end of this decade.

This amount, according to IAG, does not include the €400 million that Iberia’s parent company will have to pay, between cash and shares, to complete the purchase of Air Europa, which next week is expected to move on to phase 2, a detailed study in which it will present its proposal for remedies to guarantee competition on certain routes after the merger.

On the other hand, Expansión reports in today’s edition that the Spanish airline Iberia, a member of IAG, and the unions resume negotiations today, Monday, on the future employment of the 4,000 ground employees (handling) who fear being subrogated by other companies that, in principle, have to maintain their working conditions until the end of 2025. Iberia will subrogate at least 1,000 of its 8,000 employees in the area to other companies after losing the licence to provide ramp services to third parties at eight Spanish airports, including four of the five main ones. The final number will depend on the outcome of the negotiations.

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