Airline in £90m Spanish move

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British Airways parent company International Airlines Group (IAG) has launched a €113 million (£90m) offer to take full control of Spanish low-cost carrier Vueling, writes Gareth Mackie.

The group’s Iberia subsidiary already owns just under half of Vueling, which was set up in 2004 to operate flights between Barcelona and Ibiza. The airline is now ranked the second largest in Spain after Ireland’s Ryanair.

IAG chief executive Willie Walsh said the deal “would be positive for Spain” – where unemployment is running at 25 per cent – as the group planned to keep Vueling’s Barcelona base and create jobs.

He added: “It has significantly increased capacity while remaining profitable, despite the Spanish economic slowdown, and already has extensive commercial arrangements with Iberia. We would plan to retain the current Vueling management team.”