MADRID, May 1 — International Consolidated Airlines Group’s (IAG) Spanish airlines Iberia and Vueling have secured €1 billion (RM4.7 billion) of government-backed loans to cope with the fallout from the coronavirus pandemic, IAG said today.

Iberia, Spain’s flagship airline, has borrowed €750 million and Vueling, a low-cost carrier, €260 million, IAG’s Chief Financial Officer Stephen Gunning said in a statement.

The five-year loans will be channelled via a syndication of banks, he added.

“The agreement is part of the legal framework established by the Spanish government to mitigate the Covid-19 economic impact,” Gunning said.

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Europe’s airlines have been forced to ground most of their planes as travel restrictions have been introduced across the region to tackle the pandemic.

IAG’s competitors, such as Franco-Dutch Air France-KLM and Germany’s Lufthansa, have secured billions of euros in government rescue packages.

IAG, long a critic of state support for airlines, has so far not sought a government rescue, but has announced thousands of job cuts at its main British Airways business and also said it would take up government furlough and loan schemes. — Reuters

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