Aer Lingus Owner IAG Secures $1.76bn Credit Facility
Aer Lingus owner International Airlines Group (IAG) has said that it has secured a $1.76 billion credit facility from a group of banks that will be available to its coronavirus-hit airlines Aer Lingus, British Airways and Iberia.
The travel sector was dealt a fresh blow this week when Britons were warned not to book summer holidays abroad, deepening fears of a second straight lost summer as Europe's slow and chaotic vaccine rollout undermines expectations of a rebound.
The company said in a statement that the three airlines will have a separate borrowing limit within the overall three-year facility.
"Amounts drawn would be secured against eligible unencumbered aircraft assets and take-off and landing rights at both London Heathrow and London Gatwick airports," it said.
IAG also said that British Airways had simultaneously cancelled its US dollar facility, which had $786 million available at the end of December of 2020 and was due to expire on June 23.
IAG's total liquidity is estimated to be €10.3 billion ($12.22 billion) as of March 31, it said.