MADRID, May 1 (Reuters) - International Consolidated
Airlines Group's (IAG) Spanish airlines Iberia and Vueling have
secured 1 billion euros ($1.1 billion) of government-backed
loans to cope with the fallout from the coronavirus pandemic,
IAG said on Friday.
Iberia, Spain's flagship airline, has borrowed 750 million
euros and Vueling, a low-cost carrier, 260 million euros, IAG's
Chief Financial Officer Stephen Gunning said in a statement.
The five-year loans will be channelled via a syndication of
banks, he added.
"The agreement is part of the legal framework established by
the Spanish government to mitigate the COVID-19 economic
impact," Gunning said.
Europe's airlines have been forced to ground most of their
planes as travel restrictions have been introduced across the
region to tackle the pandemic.
IAG's competitors, such as Franco-Dutch Air France-KLM
and Germany's Lufthansa, have secured
billions of euros in government rescue packages.
IAG, long a critic of state support for airlines, has so far
not sought a government rescue, but has announced thousands of
job cuts at its main British Airways business and also said it
would take up government furlough and loan schemes.
($1 = 0.9104 euros)
(Reporting by Inti Landauro; Editing by Mark Potter)