International Consolidated Airlines Group (LON: IAG) has been given a significant discount to keep the Air Europa deal alive.
The owner of British Airways will now pay between €300 to €400 million to acquire the Spanish carrier instead of €1 billion agreed earlier this year.
The pandemic created havoc in the airline industry with shares of the airline companies tumbling to all-time lows.
IAG has successfully renegotiated the deal to get a significant discount and pay in its shares to get the deal done.
The deal received a major boost earlier this month after the Spanish government presented a 475 million euro aid package for Air Europa.
Last month, the new CEO of IAG Luis Gallego said that his company is still interested in buying Air Europa.
“We are waiting to see the package and the conditions attached, and at that moment, we will continue the negotiation,” he told an investor call on Friday.
IAG share price is trading 1.5% lower today and over 62% higher on the month.
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