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International Airlines Group (IAG) Fundamentals


International Consolidated Airlines Group, S.A., also known as International Airlines Group, is the name of an Anglo-Spanish holding company formed on 8 April 2010 as a result of the proposed merger between British Airways and Iberia.


The new company will be the third largest airline holding company in the world by revenue,with 419 aircraft transporting passengers between 200 destinations.The new company will carry over 62 million passengers per year, according to British Airways executives.Both airlines will, however, continue to operate under their current brand names. British Airways shareholders will take a 55% stake in the new company, while Iberia shareholders will own the remaining 45% stake.

Directorate Change

IBERIA CHIEF EXECUTIVE

International Airlines Group (IAG) and Rafael Sánchez-Lozano have decided by mutual agreement that he will step down as chief executive of Iberia and from the IAG board with immediate effect. He will be replaced by Luis Gallego who is currently chief executive of Iberia's subsidiary Iberia Express. Luis has joined the Iberia and IAG boards.

Tender offer for the shares of Vueling Airlines

PUBLIC TENDER OFFER FOR THE SHARES OF VUELING AIRLINES, S.A.


International Consolidated Airlines Group, S.A., in compliance with article 82 of Law 24/1988, of July 28, on the Securities Markets, hereby announces that its wholly-owned subsidiary, Veloz Holdco, S.L. (Sociedad Unipersonal) ("Veloz Holdco"), in relation with the tender offer it has launched for 100% shares of Vueling Airlines, S.A. ("Vueling") (the "Offer"), has resolved:

1. To increase the consideration offered in the Offer of 7 euros per share of Vueling to 9.25 euros per share.

2. To extend the Offer acceptance period from 39 to 48 calendar days.

3. To reduce the Offer's minimum acceptance condition from 90% of those Vueling voting rights not owned by Iberia to 1,244,029 Vueling shares, which represent 4.16% of Vueling's share capital.

Veloz Holdco will submit the documentation relating to the amended Offer with the Spanish National Securities Markets Commission (CNMV) for its authorisation on or before 3 April 2013.



27 March 2013

American Airlines and US Airways merger approved

The merger of the owner of American Airlines and US Airways has been approved by a US judge, moving the two companies one step closer to forming the world's largest carrier.

The deal had to be approved by the judge because American Airlines has been in bankruptcy protection since November 2011.

The merger was first announced in February.

It still needs approval by the Justice Department and US Airways shareholders.

They are expected to back the deal before the end of the year.

LONGHAUL FLEET ORDERS

International Airlines Group (IAG) has reached agreement with Boeing for new longhaul aircraft for the group's fleet.

IAG plans to convert 18 existing Boeing 787s options into firm orders for British Airways. They will be used to replace some of the airline's Boeing 747-400 aircraft between 2017 and 2021.

For Iberia, IAG has reached agreement with Boeing to secure commercial terms and delivery slots that could lead to an order for Boeing 787s. Firm orders will only be made when Iberia has restructured and reduced its cost base and is in a position grow profitably.

British Airways' 787s will be powered by Rolls-Royce Trent 1000 engines. The engine order includes a comprehensive maintenance package with total care agreement.

Willie Walsh, IAG chief executive, said: "British Airways has 24 Boeing 787s on order already and we plan to boost this by a further 18 aircraft by exercising our options.

"The aircraft offers a step change in fuel burn efficiency versus our existing aircraft with improvements in fuel cost per seat of more than 20 per cent. New technology engines and improved aerodynamics will lower fuel burn leading to reduced carbon and NOx emissions.

"The creation of IAG has resulted in greater buying power for both airlines through joint procurement and we have been able to obtain delivery slots for Iberia as part of British Airways' order".

British Airways has 118 wide-bodied longhaul aircraft in its fleet with 42 aircraft (12 A380s, 24 B787s, six B777-300ERs) already ordered.

Iberia has 31 wide-bodied longhaul aircraft in its fleet with six A330 aircraft already ordered.

The fleet order is subject to approval by IAG shareholders.

Airbus seen close to BA deal, adding pressure for Boeing revamp

PARIS | Sun Apr 7, 2013 10:21pm BST
(Reuters) - A potential $7 billion (4.5 billion pounds) order from British Airways for Airbus A350 jets is set to hand Boeing Co (BA.N) its next major challenge as it nears the end of a three-month crisis over the grounding of the 787 Dreamliner, analysts said.

If confirmed, the order would strike a blow inside one of Boeing's most loyal wide-body customers and may hike pressure on the U.S. planemaker to defend future profits by formally offering a revamped version of its successful 777 mini-jumbo.

Spain's Vueling accepts takeover bid from IAG

MADRID | Tue Apr 9, 2013 12:23pm EDT

(Reuters) - The board of Spanish low-cost airline Vueling (VULG.MC) on Tuesday unanimously recommended shareholders accept an improved takeover offer of 9.25 euros per share from International Airline Group (ICAG.L) (ICAG.MC).

IAG, which already owns 45.85 percent of Vueling as well as British Airways and Spanish airline Iberia, last month raised its bid by almost one third after the Barcelona-based carrier rejected a previous offer of 7 euros per share.

IAG chief says won't merge Spanish airline Vueling with Iberia

ABU DHABI | Wed Apr 10, 2013 12:52pm BST
(Reuters) - International Airline Group (ICAG.L) will not merge Spanish low-cost airline Vueling (VULG.MC) with its Iberia unit if its takeover bid is successful, IAG's chief executive Willie Walsh said on Wednesday.

The board of Vueling on Tuesday unanimously recommended shareholders accept an improved offer of 9.

Walsh said the profitable Vueling business will operate separately from loss-making Iberia after the takeover.

Dreamliner: Boeing 'may never find battery fault cause'

Boeing has admitted that it may never know what caused the battery malfunctions that resulted in all its 787 Dreamliner aircraft being grounded.

The admission came from Boeing's Larry Loftis, the general manager of the company's 787 division.

Replacement battery systems are now being fitted to all 50 Dreamliners that had been in operation with airlines around the world.

Boeing expects the planes to resume service in the coming weeks.

skinny doesn't it make passengers feel confident if the aircraft manufacturer doesn't know why components in its aircraft fail, steer clear.

Yes - its not very reassuring!

AIRBUS A350 ORDERS



International Airlines Group (IAG) is ordering Airbus A350 aircraft for the group's longhaul fleet.

For British Airways, there are 18 A350-1000 firm orders, plus 18 options. These are in addition to 18 Boeing 787 options which IAG announced previously that it plans to convert into firm orders.

The A350 and Boeing 787 firm orders will be used to replace 30 Boeing 747-400 aircraft between 2017 and 2023 while the options can be used to replace aircraft or provide opportunities for growth.

For Iberia, IAG has also reached agreement with Airbus as well as Boeing to secure commercial terms and delivery slots that could lead to firm orders for A350s and/or Boeing 787s. Firm orders will only be made when Iberia is in a position to grow profitably, having restructured and reduced its cost base.

The A350 will be powered by Rolls-Royce Trent XWB engines. The order includes a comprehensive maintenance package with total care agreement.

Willie Walsh, IAG chief executive, said: "The A350-1000 will bring many benefits to our fleet. Its size and range will be an excellent fit for our existing network and, with lower unit costs, there is an opportunity to operate a new range of destinations profitably. This will not only bring greater flexibility to our network but also more choice for our customers.

"Both aircraft will provide further cost efficiencies and environmental benefits with fuel cost per seat improvements of more than 20 per cent.

"This order will also secure jobs in Britain and Spain. The A350's wings are made in Britain while its horizontal tail plane, horizontal tail plane boxes and lower wing covers are made in Spain. Rolls-Royce Trent XWB engines are assembled in Britain".

The fleet order is subject to approval by IAG shareholders.

IAG has enough investor support to gain control of Vueling

MADRID | Tue Apr 23, 2013 10:47am BST
(Reuters) - The Spanish stock market regulator said on Tuesday that airline IAG ICAG.C (ICAG.MC) had enough bid acceptances to gain control of airline Vueling (VULG.MC).

IAG, which already owns 45.85 percent of Vueling as well as British Airways and Spanish airline Iberia, last month raised its bid by almost one third after Vueling rejected a previous offer of 7 euros per share.

Deutsche Bank Buy 262.35 256.40 330.00 330.00 Reiterates

Bank of America Merrill Lynch Buy 262.35 256.40 310.00 310.00 Reiterates

Liberum Capital Hold 269.55 269.60 - - Upgrades

Making new highs this morning.

Credit Suisse Outperform 277.80 269.60 295.00 328.00 Reiterates

Chart looking good skinny.

Liberum Capital upgraded the BA/Iberia operator to hold from sell today.

Deutsche Bank Buy 272.80 272.00 330.00 330.00 Reiterates

Credit Suisse Outperform 280.95 281.40 328.00 328.00 Reiterates

Deutsche Bank Buy 280.95 281.40 330.00 330.00 Reiterates