London is claiming VAT from the airline group on the redemption of points for flights in the loyalty program. The holding company has already paid £103 million, although it disagrees and does not rule out going to court.IAG, the parent company of Iberia, British Airways, and Vueling, is clashing with the British tax authority (HMRC) over the VAT of IAG Loyalty, its loyalty subsidiary that allows the redemption of points…
British Airways (BA; 52% of IAG 2024 BS(e) capacity) is readjusting its long-haul capacity schedule in the face of delays in the delivery of Rolls-Royce engines and parts, particularly the Trent 1000 engines installed in B-787s. They do not expect the problem to be solved in the short term. In any case, the company has said it can offer the vast majority of those affected a same-day flight with British…
Banco Sabadell: After failing to go ahead with the purchase of Air Europa (AE) in the short term, there is TAP Portugal, which IAG has already winked at. We believe it makes strategic sense mainly because of its positioning in LatAm (market share close to 7%; with less overlap than AE) and because it deepens the concentration of the sector and also generates synergies (between €250-600 million according to our…
IAG yesterday informed the National Securities Market Commission (CNMV) ofits decision to terminate the agreement with Globalia signed on February 23, 2023, under which IAG undertook to acquire the remaining 80% of the issued share capital of Air Europa from Globalia. The Board of Directors has concluded that, in the current regulatory environment, continuing with the transaction would not be in the best interests of the shareholders. Under the terms…
Alphavalue / Divacons | The Spanish-British airline confirmed yesterday in a note sent to the Spanish National Securities Market Commission (CNMV) that it has completed the share buyback programme it announced on 1 July. In execution of this programme, the company has acquired a total of 27,064,575 shares, representing 0.5% of IAG’s share capital as of yesterday, said Nicholas Cadbury, chief financial and sustainability officer. The purpose of this programme…
Alphavalue/DIVACONS | Iberia is finalising the Air Europa route divestment package it will submit to Brussels to resolve supply-side constraints and obtain EU regulatory approval for the purchase of Globalia’s airline. On the other hand, the Irish fund Helikon Investments has notified the National Securities Market Commission (CNMV) of its entry into the capital of the Spanish-British airline (>3%) through the acquisition of several swaps that place it as an…
Link Securities | IAG (IAG) has repaid €3,271 million of debt loans that its various airlines signed between 2020 and 2021, which matured between 2024 and 2026, according to Expansión newspaper. The average cost of these loans stood at 9%, compared to the 4.5% – 5.25% that is currently the price of money in Europe and the UK. With the flow of income normalised, thanks to the increase in demand,…
Banc Sabadell: The European Commission (EC) would see significant competition problems in the purchase of Air Europa by IAG (IAG), much more than in 2019, when the operation was initially considered, due to the greater weight of the Spanish market since then. It should be recalled that the EC communicated at the end of January that it was initiating a detailed investigation (phase II) into the proposed acquisition of Air…
Banco Sabadell: The EC said yesterday it is launching a detailed (phase II) investigation into Iberia’s proposed takeover of Air Europa as it wants “the transaction not to adversely affect prices or quality of services”, according to Vestager. The EC now has 90 working days (until 7 June 2024) to take a final decision, provided it does not request additional information from the parties involved, in which case the clock…
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….