BA’s IAG stablemate Iberia will acquire Air Europa, Spain’s third largest carrier, for just €500 million, down from an original €1 billion.
Payment will be deferred until the sixth anniversary of completion, which is still yet subject to approval by the European Commission.
IAG expects the deal to go through during the second half of 2021.
In a trading update, IAG said the acquisition remained "strategically important" to the future of both the group and Iberia, adding it foresaw benefits to the group from growth opportunities as aviation emerges from the Covid crisis.
