IAG buys Air Europa in €1bn deal

IAG, owner of British Aiways and Iberia, says it is buying Air Europa for €1bn (£860m).

Willie Walsh, (pictured) chief executive of IAG, said: “Acquiring Air Europa would add a new competitive, cost effective airline to IAG ,consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership, therefore generating additional financial value for our shareholders.

“IAG has a strong track record of successful acquisitions, most recently with the acquisition of Aer Lingus in 2015 and we are convinced Air Europa presents a strong strategic fit for the group.”