MADRID (Reuters) – International Consolidated Airlines Group (IAG) Spanish airlines Iberia and Vueling have secured € 1 billion ($ 1.1 billion) in government-guaranteed loans to deal with fallout from the pandemic coronavirus, AGI ICAG.L said Friday.
Iberia, Spain’s flagship airline, borrowed 750 million euros and Vueling, a low-cost carrier, 260 million euros, IAG chief financial officer Stephen Gunning said in a statement.
The five-year loans will be channeled through bank syndication, he added.
“The agreement is part of the legal framework established by the Spanish government to mitigate the economic impact of COVID-19,” Gunning said.
European airlines have been forced to ground most of their planes as travel restrictions have been introduced in the region to fight the pandemic.
IAG’s competitors, such as the Franco-Dutch Air France-KLM AIRF.PA and the German Lufthansa LHAG.DE, have secured billions of euros in government bailouts.
IAG, long critical of state support for airlines, has so far not called for a government bailout, but has announced thousands of job cuts at its main company British Airways and also said that he would take time off and government loan programs.
Reporting by Inti Landauro; Editing by Mark Potter