IAG share price: British Airways parent eyes Monarch assets

FTSE 100 group interested in acquiring part of slots, fleet and crew

IAG share price: British Airways parent eyes Monarch assets

British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) is interested in acquiring part Monarch Airlines’ assets, Sky News has revealed. The report comes as the troubled airline was placed into administration.

IAG’s share price closed little changed on Friday, shedding 0.17 percent to end the session at 593.50p, underperforming the broader UK market, with the benchmark FTSE 100 index climbing 0.68 percent to close at 7,372.76 points. The group’s shares have added more than 48 percent to their value over the past year, and are up by some 34 percent in the year-to-date.

Sky News reported this morning that IAG, which also owns Aer Lingus and low-cost airlines Vueling and Level, had expressed an interest in acquiring some of Monarch’s take-off and landing slots, fleet and crew. Thomas Cook and other package holiday providers are also understood to have been approached by Monarch’s advisers in an attempt to gauge appetite for its assets.

The Guardian meanwhile reported that accountants KPMG has said last night that Monarch Airlines has been placed into administration and all flights from the UK have been cancelled and will not be rescheduled.

The news comes after IAG reportedly also joined a string of other bidders interested in parts of insolvent Air Berlin. The German carrier, however, has reportedly chosen easyJet (LON:EZJ) and Lufthansa as the preferred bidders to acquire some of its assets.

In analyst news, Goldman Sachs, which has a ‘neutral’ rating on the British Airways parent, boosted its price target on the stock from 645p to 680p at the end of last month. According to MarketBeat, the FTSE 100 group currently has a consensus ‘hold’ rating and an average price target of 538.52p. 

As of 08:03 BST, Monday, 02 October, International Consolidated Airlines Grp share price is 595.20p.

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