IAG will close the purchase of Air Europa at the end of the year or in January if it reaches an agreement on the price

IAG, the

and which was holding its shareholders' meeting today, aims to complete the purchase of Air Europa at the end of this year or at the beginning of 2021, provided that an agreement is reached on the price, as indicated during his speech by the president of IAG, Antonio Vázquez, who will leave office in January 2021.

Today's meeting was important because, among other things,

: Luis Gallego leaves Iberia to replace Willie Walsh in the position of executive CEO, while Javier Sánchez-Prieto (Vueling) assumes command of Iberia.

Vázquez will be replaced by Javier Ferrán.

Shareholders have given their approval to these changes and also to the capital increase of 2,700 million proposed by the company in July and with which it intends to face the crisis.

They have also approved Willie Walsh's controversial bonus of one million euros as a reward for his management in 2019.

The Covid crisis erupted just after IAG proposed the replacement of Walsh,

scheduled for March, but which had to be postponed due to circumstances.

Also after the announcement of the purchase of Air Europa by Iberia, an operation that was pending the approval of Competition, but that the pandemic is complicating.

Negotiation

As confirmed by Vázquez,

.

Iberia maintains that the airline is now worth less than before the health crisis.

For IAG, Air Europa "continues to have a strategic interest", as it has connections in Latin America and will turn Madrid-Barajas airport into a hub (traffic distribution center) at the level of its European competitors (Charles de Gaulle airport, in Paris, or Schipoll, in Amsterdam).

As a result of the fall in demand and income derived from the crisis, Air Europa has had to ask the rescue fund for strategic companies for aid of 400 million euros to avoid bankruptcy.

Asked by a shareholder about whether Air Europa is going to keep its fleet and its brand if the purchase is finally executed, Vázquez replied that

, but that now the priority "is to face the crisis derived from the Covid and come out of it strengthened. "

There is no airline that is free from the impact of this debacle, as passenger demand has plummeted 90%.

Revenues have fallen accordingly and, furthermore, the airline industry has very high fixed costs that cannot be cut easily.

They all foresee adjustments, in staff and fleet, to face the situation.

Luis Gallego relay

Until June, IAG 3.8 billion euros and

a year later than initially thought.

This will force IAG airlines to "adapt their structure to current demand," both Vázquez and Willie Walsh have acknowledged.

Aviation is experiencing the worst crisis in its history (much more serious than that derived from the 9/11 attacks or the crisis of 2008) and

The manager has the credentials of having carried out the transformation process of Iberia, which "is a benchmark in world aviation", in the words of Vázquez.

Walsh, who is retiring after 42 years in the aviation world, believes IAG has demonstrated "strength in its business model and flexibility to adapt to circumstances."

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Know more

• Iberia

• Vueling

• British Airways

• Paris

Aeronautical sectorIAG today holds a crucial meeting in which it will vote on the capital increase and the replacement of Luis Gallego

EmpresasGlobalia (Air Europa) requests 400 million euros from the rescue fund

Iberia, Ryanair and Vueling launch aggressive offers with cheap flights due to the lack of travelers

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