Explain who are the IAG and what are the company’s objectives?
International airlines group are one of the world’s largest airline groups. It has 459 aircraft flying to 243 separate destinations carrying 62 million and change in passengers annually. Based on revenue it is Europe’s third largest and the world’s sixth largest group.
They are a relatively new company forming only three years ago in 2011. It is the parent company of British Airways, Iberia and Vueling. Operating these airlines allowed them to immediately have an impact on the aviation market. The airlines they own give them a dominant position on Europe. The main aim of IAG is to play a dominant role in the aviation on a regional and global scale.
(I Air Group 2014)
They plan on doing this by:
• Generating 650 million in synergies to add to the initial synergies they generated when British Airways merged with Iberia.
• Getting Iberia back to its position in the market before the economic downturn. This will help provide confidence and hopefully increase the investment by shareholders.
• Keeping Vueling on a good road which will hopefully add to its success and help it grow and continue to become more profitable.
• Introducing new aircraft with better efficiency and less fuel consumption which will save cost and reduce Co2 emissions.
All of the above innovative changes above will give IAG a chance to reach their overall goal of generating a 1.8 billion turning profit for the year 2015. The new