Spanish low-cost carrier Vueling is to become part of British Airways and Iberia parent International Airlines Group.

The majority of the Barcelona-based airline’s shareholders accepted IAG’s €123.5 million cash tender offer following recommendation by the Vueling board.

IAG’s subsidiary Iberia already owns 45.85% of Vueling.

Vueling will be a standalone company within IAG with its chief executive Alex Cruz reporting into IAG chief executive Willie Walsh.

Walsh said: “Vueling is a great airline and will be a welcome addition to IAG where it will benefit from the group’s financial strength.

“We plan to retain Vueling’s current business model and management structure and its strong base in Barcelona.”

The Spanish National Securities Market Commission announced today that 82.48% of the remaining shareholders have accepted IAG’s offer of €9.25 per share. IAG will own 90.51% of Vueling when the acquisition is completed on Friday.