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.
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