International Consolidated Airlines Group (LON:IAG) shares flew higher on reports the British Airways owner has beat off competition to secure runway slots at London’s Gatwick airport.
The airline has secured the majority of the take-off and landing slots being sold by the administrator of carrier Monarch in a multi-million pound deal, the Press Association reported.
READ: British Airways parent IAG shares rise as it raises annual profit target for 2018-2022
Shares rose 1.26% to 603.50p in afternoon trading.
IAG, which also owns Iberia and Vueling, outbid rivals for the slots at Britain’s second largest airport after Heathrow.
EasyJet PLC (LON:EZY), Wizz Air Holdings (LON:WIZZ) and Norwegian had expressed their interest in buying the slots at the London airports. Thomas Cook had also reportedly made a bid.
Monarch, which ceased operations in early October, has estimated the slots could be worth about £60mln.
Monarch's slots at Luton Airport up for sale
The news comes after Monarch’s administrators KPMG won an appeal last Wednesday to have the right to sell airport slots for next year. The court ruling was criticised by industry bodies such as the International Air Transport Association (IATA).
KPMG and IAG declined to comment.
Monarch’s slots at Luton Airport are also being sold following its collapse in October, which led to 1,858 workers being made redundant and the flights and holidays of about 860,000 customers being cancelled.