International Airlines Group (IAG) will invest up to €200 million over the next five years through IAGi Ventures, its new corporate venturing arm. This investment is set to be one of the largest of its kind globally and the largest by a European airline group. It underscores IAG's commitment to harnessing innovation to transform its businesses, enhance customer experience, increase operational efficiency and promote more sustainable aviation.
The investment strategy will be grounded in financial discipline, focusing on data-driven, strategic investments that offer long-term value for IAG's businesses. IAG intends to invest in companies across all global markets, specifically targeting businesses developing technologies to address the most pressing challenges currently faced by the aviation industry.
Jorge Saco, IAG's Chief Information, Procurement, Services and Innovation Officer, highlighted the company's determination to lead the airline industry in innovation. He stated, “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.”
IAG has been investing in technology-driven start-ups and scale-ups since 2017, achieving notable successes with companies such as Assaia, which optimises airport and airline operations using AI, i6, which provides digital fuel management solutions to reduce operating costs and CO2 emissions, and LanzaJet, which is developing cost-effective sustainable aviation fuel for commercial use in the UK.
IAGi Ventures will collaborate with IAG's accelerator programme, which has been running since 2016. The Hangar51 accelerator programme will now be rebranded as the IAGi Accelerator, with applications for this year's scheme opening later this month. During the programme, participating companies will design and run a proof of value to assess the potential of their solutions and work with experts across the Group to test their technology in operational settings. (€1.00 = US$1.09 at time of publication).
