British Airways owner IAG launches new venture arm; plans to fuel high-flying aviation companies with €200M

London-based International Airlines Group (IAG), one of the world’s largest airline groups, announced its plans to invest up to €200M over five years in promising companies through its new venture arm — IAGi Ventures.

This investment, planned over five years, is set to be one of the largest investments of its kind globally and the biggest by a European airline group.

Through this dedicated funding, IAG is looking to invest in high-potential companies shaping the future of aviation across areas including customer experience, operations, and sustainability.

Focus on data-driven and strategic investments

IAG’s investment strategy will focus on financial discipline, prioritising data-driven and strategic investments that create long-term value for its businesses.

The company will seek investments in firms across global markets, particularly those developing technologies that tackle the most pressing challenges currently faced by the aviation industry.

Jorge Saco, IAG’s Chief Information, Procurement, Services, and Innovation Officer, emphasised the company’s commitment to leading the airline industry in innovation.

He states “Adopting new technologies will improve our business and the value we generate, which is why we are seeking to work with and learn from top innovators through venturing. By launching venturing, alongside our accelerator programme, we plan to work with the best start-ups and scale-ups tackling today’s challenges.”

IAGi Ventures will work with IAG’s accelerator program, now called the IAGi Accelerator, which has been running since 2016.

Applications for this year’s program will open later this month.

During the program, companies will create and test their solutions in real operational settings, working with experts from IAG to assess their technology’s potential.

A brief about the International Airlines Group (IAG)

International Airlines Group (IAG) is one of the largest airline groups in the world, operating over 600 aircraft and transporting more than 122 million customers to 260 destinations in 91 countries each year.

IAG’s leading airlines include Aer Lingus, British Airways, Iberia, LEVEL, and Vueling, based in Spain, the UK, and Ireland.

The Group also has two complementary businesses: IAG Cargo and IAG Loyalty.

As the first airline group globally to commit to achieving net zero emissions by 2050, sustainability is a fundamental part of IAG’s strategy.

Since 2017, IAG has been investing in technology startups and scale-ups. Some successful investments include Assaia, which uses AI to improve airport and airline operations; i6, a UK company that offers digital fuel management to cut costs and reduce CO2 emissions; and LanzaJet, which is working on affordable sustainable aviation fuel for the UK.