International Airlines Group
Encyclopedia
International Airlines Group (informally IAG, officially International Consolidated Airlines Group, S.A.) is a multinational
airline
holding company
headquartered in London
, United Kingdom
and with its registered office
in Madrid
, Spain
. It was formed in January 2011 by the merger of British Airways
and Iberia, respectively the flag carrier
airlines of the United Kingdom and Spain. It is the seventh-largest airline company in the world (and third-largest in Europe) measured by 2010 revenues.
IAG has its primary listing on the London Stock Exchange
and became an FTSE 100 constituent on 24 January 2011. It has secondary listings on the Madrid
, Barcelona, Bilbao and Valencia stock exchanges, and its shares were added to the IBEX 35
index on 1 April 2011.
, is likely. The merger between British Airways and Iberia was completed on 21 January 2011, and shares in International Airlines Group began trading in London and Madrid on 24 January.
In February 2011 the CEO of IAG Willie Walsh stated that the company might be interested in buying Virgin Atlantic, but only to acquire its slots at London Heathrow Airport
. In March 2011 IAG announced that it had agreed to purchase eight A330-300 Airbus aircraft and to take options for eight more, to be used for Iberia's longhaul fleet. In June 2011, IAG announced they were interested in purchasing the UK-based airline BMI
from its owner Lufthansa
.
On 6 October 2011 IAG announced the launch of Iberia Express, a new low-cost airline to operate short- and medium-haul routes from IAG's Madrid hub, and provide transfer feed onto Iberia's longhaul network. Iberia Express is planned to start operations in summer 2012. On 4 November 2011 IAG agreed in principle to acquire BMI from Lufthansa for an undisclosed sum. Subject to clearance from regulators, the deal is planned to complete by April 2012 and will increase IAG's share of slots at Heathrow airport from 45% to 54%.
IAG has its operational headquarters, which controls the management of both its Spanish and British subsidiaries, at 2 World Business Centre on the property of London Heathrow Airport
in the London Borough of Hillingdon
. The company is incorporated according to Spanish law (receiving the "S.A.
" designation of a Spanish company versus the "Plc
" of a British one), with the board's meetings occurring in Madrid
. IAG has its tax domicile in Spain.
Plc
Airlines in which International Airlines Group owns an interest:
Flybe
15% Royal Air Maroc
0.95% share
Other travel industries in which International Airlines Group owns an interest: Eurostar International Limited 10%
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
headquartered in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and with its registered office
Registered office
Registered office is a term used to describe the address which is registered with the government registrar as the official address of a company, an association or any other legal entity. Generally it will form part of the public record...
in Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
. It was formed in January 2011 by the merger of British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
and Iberia, respectively the flag carrier
Flag carrier
A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given country, enjoys preferential rights or privileges, accorded by the government, for international operations. It may be a state-run, state-owned or private but...
airlines of the United Kingdom and Spain. It is the seventh-largest airline company in the world (and third-largest in Europe) measured by 2010 revenues.
IAG has its primary listing on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and became an FTSE 100 constituent on 24 January 2011. It has secondary listings on the Madrid
Bolsa de Madrid
Bolsa de Madrid is the largest and most international of Spain's four regional stock exchanges that trade shares and convertible bonds and fixed income securities, and both government and private-sector debt...
, Barcelona, Bilbao and Valencia stock exchanges, and its shares were added to the IBEX 35
IBEX 35
The IBEX 35 is the benchmark stock market index of the Bolsa de Madrid, Spain's principal stock exchange. Initiated in 1992, the index is administered and calculated by Sociedad de Bolsas, a subsidiary of Bolsas y Mercados Españoles , the company which runs Spain's securities markets...
index on 1 April 2011.
History
British Airways and Iberia announced the signing of a preliminary merger agreement in November 2009. In April 2010 British Airways and Iberia signed a full merger agreement, with an intended completion date of late 2010, subject to the securing of necessary regulatory appovals. News reports in 2010 suggested that a future tie-up with AMR Corporation, the airline holding company owner of American AirlinesAmerican Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, is likely. The merger between British Airways and Iberia was completed on 21 January 2011, and shares in International Airlines Group began trading in London and Madrid on 24 January.
In February 2011 the CEO of IAG Willie Walsh stated that the company might be interested in buying Virgin Atlantic, but only to acquire its slots at London Heathrow Airport
London Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
. In March 2011 IAG announced that it had agreed to purchase eight A330-300 Airbus aircraft and to take options for eight more, to be used for Iberia's longhaul fleet. In June 2011, IAG announced they were interested in purchasing the UK-based airline BMI
Bmi (airline)
British Midland Airways Limited , is an airline based at Donington Hall in Castle Donington in the United Kingdom, close to East Midlands Airport, and a fully owned subsidiary of Lufthansa...
from its owner Lufthansa
Lufthansa
Deutsche Lufthansa AG is the flag carrier of Germany and the largest airline in Europe in terms of overall passengers carried. The name of the company is derived from Luft , and Hansa .The airline is the world's fourth-largest airline in terms of overall passengers carried, operating...
.
On 6 October 2011 IAG announced the launch of Iberia Express, a new low-cost airline to operate short- and medium-haul routes from IAG's Madrid hub, and provide transfer feed onto Iberia's longhaul network. Iberia Express is planned to start operations in summer 2012. On 4 November 2011 IAG agreed in principle to acquire BMI from Lufthansa for an undisclosed sum. Subject to clearance from regulators, the deal is planned to complete by April 2012 and will increase IAG's share of slots at Heathrow airport from 45% to 54%.
Operations
IAG has around 420 aircraft, serves around 200 destinations and carries over 62 million passengers per year. British Airways and Iberia operate under separate brand names.IAG has its operational headquarters, which controls the management of both its Spanish and British subsidiaries, at 2 World Business Centre on the property of London Heathrow Airport
London Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
in the London Borough of Hillingdon
London Borough of Hillingdon
The London Borough of Hillingdon is the westernmost borough in Greater London, England. The borough's population was recorded as 243,006 in the 2001 Census. The borough incorporates the former districts of Ruislip-Northwood, Uxbridge, Hayes and Harlington and Yiewsley and West Drayton in the...
. The company is incorporated according to Spanish law (receiving the "S.A.
S.A. (corporation)
S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
" designation of a Spanish company versus the "Plc
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
" of a British one), with the board's meetings occurring in Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
. IAG has its tax domicile in Spain.
Divisions, subsidiaries and franchises
International Airlines Group British AirwaysBritish Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
Plc
-
-
United Kingdom BA CityFlyerBA CityFlyerBA CityFlyer is a wholly owned subsidiary airline of British Airways based in Didsbury, Manchester, England. It operates a network of domestic and European services from London City Airport...
(subsidiary) -
France OpenSkiesOpenSkiesOpenSkies is a fully owned subsidiary airline of British Airways that began operations in June 2008. Originally OpenSkies was operated by BA European Limited but in April 2009 the name was transferred to Elysair . It is a full-service carrier and offers business class only cabins on board its...
(subsidiary) -
South Africa ComairComair (South Africa)Comair is an airline based in South Africa. It operates scheduled services on domestic trunk routes as a British Airways franchisee and an affiliate member of the Oneworld airline alliance. Its main base is OR Tambo International Airport, Johannesburg, with hubs at Cape Town International Airport...
(subsidiary, 18% stake) -
Denmark Sun-AirSun Air of ScandinaviaSun Air of Scandinavia is an airline based in Billund, Billund Municipality, Denmark. It is a regional scheduled airline operating a franchise service in British Airways colours. It also offers charter flights, air taxi services, specialist aerial work and aircraft brokerage. Its main base is...
(franchise) Iberia Líneas Aéreas de España, S.A. -
Spain Iberia Regional (operated by Spain Air NostrumAir NostrumAir Nostrum, Líneas Aéreas del Mediterráneo, S.A., also known as Iberia Regional, is a regional airline based in Valencia, Spain. Air Nostrum is an independent carrier which operates as a franchisee of Iberia Airlines. Iberia Regional franchise is a regional partner of Iberia and an affiliate...
) - Spain Iberia Express
- Spain VuelingVueling AirlinesVueling Airlines SA , commonly shortened to Vueling, is an airline based in El Prat de Llobregat, near Barcelona , where it maintains its main operating base...
(subsidiary, 45.85% stake)
-
Airlines in which International Airlines Group owns an interest:
Flybe
Flybe
Flybe Group PLC is a British low-cost regional airline headquartered at the Jack Walker House at Exeter International Airport in Devon, England...
15% Royal Air Maroc
Royal Air Maroc
Royal Air Maroc is the flag carrier airline of Morocco, headquartered on the grounds of Casablanca-Anfa Airport in Casablanca...
0.95% share
Other travel industries in which International Airlines Group owns an interest: Eurostar International Limited 10%