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IAG weighs up bid for Vueling

British Airways and Iberia owner International Airines Group is weighing up a bid for Spanish low cost carrier Vueling.

Iberia owns 46% of Vueling, which has a market capitalisation of €171 million.

IAG confirmed that its board would be considering the matter today (Thursday).

A statement said: “Following media reports, IAG can confirm that it is considering making an offer for 100% of the share capital of Vueling Airlines.

“Further announcements will be made in due course when a decision is made.”

Analysts told the Financial Times that IAG might drop low cost Spanish start-up Iberia Express and develop Vueling as its budget short-haul carrier.

Barcelona-based Vueling serves more than 100 destinations across Europe and North Africa, including London, Cardiff and Edinburgh in the UK. Flights from Gatwick are being added for 2013.

Vueling and BA signed an interline agreement in August allowing passengers on the UK carrier to connect directly to 74 destinations offered by Vueling from its Barcelona hub.

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