IAG reaches an agreement buy Air Europa for 500 million.

International Consolidated Airlines Group (IAG), owner of Iberia, British Airways, among others, has agreed to buy the Spanish airline Air Europa for 500 million euros with payment until 2026, according to the digital newspaper El Confidencial.

The two companies reached an agreement on Thursday, according to unidentified sources in the newspaper.

See also: Air Europa resumed flights to Panama.

IAG had originally agreed to buy Air Europa for 1 billion euros in November 2019, but has been pushing to reduce the price in the midst of the travel crisis caused by the pandemic, said Reuters.

For the sale to go through, the Spanish government must give up its right to appoint two directors to Air Europa’s board of directors, one of the conditions of 475 million state aid package approved last month.

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