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IAG expects Alitalia issues to spur Vueling Growth in Italy

IAG expects Alitalia issues to spur Vueling Growth in Italy

2017 05 10

2017 05 10

By Alistair Smout, Reuters 

IAG expects Alitalia's problems to help it grow its budget carrier Vueling in Italy, but the British Airways owner is not interested in a takeover of the struggling Italian flag carrier, IAG's chief executive said on Friday.

Alitalia filed to be put under special administration this week for the second time in less than a decade, starting a process that will lead to the loss-making Italian airline being overhauled, sold off or wound up.

"We clearly see some organic growth opportunities in Italy. We will look to see if there's an opprtunity to speed up growth... focused on Vueling," Willie Walsh told analysts after the group reported first quarter results, but added IAG had "no interest whatsoever" in Alitalia.

Rivals Lufthansa and Norwegian have also shown little interest in Alitalia and creditors have refused to lend it any more money.

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