British Airways owner IAG has reportedly managed to cut the price of its acquisition of Spanish airline Air Europa to €300m-€400m.
A year ago, the airlines group agreed a €1bn deal to buy the low-cost carrier, but the deal has been delayed due to the coronavirus pandemic.
But Spanish news site El Confidencial today said that a new deal for the company had been agreed.
The new price will be paid in IAG shares, it was reported. IAG declined to comment on the report.
Last month IAG chief executive Luis Gallego said that the firm was still interested in purchasing Air Europa despite the pandemic.
Speaking to investors, he said: “For sure if possible, we would like to do this deal. We are waiting to see the package and the conditions attached, and at that moment, we will continue the negotiation.”
IAG has been trying to negotiate a lower price for the airline in light of the events of the last year.
Two weeks ago Air Europa became the first Spanish company to tap a government scheme to provide emergency loans to struggling companies.
It will have six years to pay back €475m in loans, a government spokesperson said.
As a result of the pandemic, the number of flights operated by Air Europa dropped 95 per cent in the last quarter.