IAG ditches plan for Heathrow slot bonds

IAG ditches plan for Heathrow slot bonds

British Airways’ owner International Airlines Group has dropped plans to raise funds by issuing bonds against its valuable Heathrow take off and landing slots.

The airline had suggested earlier in the month that it would include 31 slots to act as collateral for new sterling secured bonds in an effort to raise an estimated £250 million.

IAG said on Friday that the planned arrangement was subject to investor feedback and market conditions.

“Despite this week's improvement in the underlying credit rating of British Airways, there was a lack of demand for this bond at a price which would compare with other financing alternatives.

"IAG has therefore decided not to progress with the bond issue,” a company statement said.

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