IAG profile: Group claims to be Europe’s third biggest airline

Led by Irishman and former Aer Lingus chief executive Willie Walsh, International Consolidated Airlines Group (IAG) is the parent of British Airways (BA) and Spanish carriers Iberia and Vueling.

It also has a cargo business and in 2012 bought part of the old British Midland International airline. The group is registered in Spain, has its headquarters in London, and its shares are traded on the London and Madrid exchanges.

Number six

According to its website, it has 464 aircraft and flies 77 million passengers to 243 destinations every year. Based on revenue, the group says it is Europe’s third biggest airline and is number six in the world.

IAG had €5 billion in cash at the end of September. In the first nine months of last year its operations made €1.13 billion profits, 70 per cent more than during the same period in 2013, when they generated €657 million.

Unlike Aer Lingus, whose two largest shareholders own more than half its stock, IAG has a large number of institutional backers, which is more usual for a large listed company.

Its biggest shareholder is Standard Life Investments, which has slightly more than 6 per cent of the group. US institution Europacific Growth fund is next with 5.26 per cent, while a third US backer, Capital Research and Management, comes third with 5.05 per cent.

Two of its subsidiaries, BA and Iberia, have operations in Ireland. BA flies from Belfast, Cork, Dublin and Shannon to destinations in Britain, including London Heathrow. Iberia offers direct flights from Dublin to Madrid.

Irish market

Veuling plans to enter the Irish market this year, with services from both Belfast and Dublin to its home airport Barcelona El Prat. The Spanish airline was set up in 2004, and is the youngest of the three IAG subsidiaries. The other two are long-established former state-owned flag carriers.