IAG to cut Air Europa price tag to 300-400 million euros: El Confidencial

FILE PHOTO: An Air Europa Boeing 737-800 airplane takes off at the airport in Palma de Mallorca, Spain, July 28, 2018. REUTERS/Paul Hanna

MADRID (Reuters) - International Consolidated Airlines Group ICAG.L has managed to cut the purchase price for Spanish carrier Air Europa to 300-400 million euros ($355-$474 million), news website El Confidencial reported on Tuesday citing unidentified sources.

The London-based group would pay the new price for Air Europa in IAG shares, El Confidencial reported.

IAG’s top executives had said they were reviewing the acquisition unveiled a year ago with a price tag of 1 billion euros before the coronavirus pandemic ravaged the travel industry.

This month, the Spanish government announced a 475 million euro aid package for Air Europa.

IAG’s Spanish unit Iberia declined to comment, while officials at Globalia, the owner of Air Europa, were not immediately available for comment.

($1 = 0.8439 euros)

Reporting by Inti Landauro and Jesus Aguado; editing by Jason Neely