International Airlines Group (IAG) has announced its plan to invest up to €200 million over the next five years through its newly launched venture arm, IAGi Ventures. This initiative aims to support companies working on innovations in aviation, particularly in customer experience, operations, and sustainability. The investment marks one of the largest of its kind by a European airline group. Through this funding, IAG seeks to collaborate with startups developing technologies that address key industry challenges. The company intends to leverage its accelerator program to work closely with promising firms and evaluate their solutions in real-world scenarios.
Compared to previous investment efforts, IAG’s latest initiative represents a more structured and strategic approach. Since 2017, the company has backed various startups, including Assaia, which applies AI to airport operations, and LanzaJet, which focuses on sustainable aviation fuel. However, while past investments were more selective, the new venture fund will provide a broader platform aimed at scaling multiple innovations simultaneously. Through IAGi Ventures, the company is reinforcing its commitment to fostering technological advancements within the aviation sector.
Where will IAG focus its investments?
IAG’s investment strategy prioritizes financial discipline, with a focus on data-driven and strategic investments that offer long-term value. The company is particularly interested in firms developing technologies that address key challenges in aviation, such as efficiency improvements and sustainability efforts. By targeting solutions that enhance airline operations and passenger experiences, IAG aims to integrate innovative technologies into its business model.
Jorge Saco, IAG’s Chief Information, Procurement, Services, and Innovation Officer, emphasized the importance of collaboration with emerging technology firms.
“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.”
What role will the IAGi Accelerator play?
The newly introduced IAGi Ventures will operate alongside the company’s existing accelerator program, now called the IAGi Accelerator. This program, which has been running since 2016, allows startups to test their solutions within real operational environments and receive guidance from industry professionals. The goal is to evaluate the feasibility and impact of emerging technologies before wider implementation.
Applications for this year’s accelerator program will open later this month. Selected companies will collaborate with IAG experts to refine their technologies and explore potential commercial applications. Through this initiative, IAG intends to establish partnerships that could lead to the long-term adoption of innovative solutions in its operations.
IAG, which operates major airlines such as British Airways, Iberia, Aer Lingus, LEVEL, and Vueling, has been actively pursuing sustainability initiatives. As the first airline group to commit to net zero emissions by 2050, the company has previously invested in companies that focus on reducing carbon footprints and improving fuel efficiency. The introduction of IAGi Ventures is expected to accelerate these efforts by identifying and supporting startups that align with the company’s strategic goals.
By launching IAGi Ventures, IAG aims to create a structured framework for investing in emerging technologies that could shape the future of aviation. The company’s decision to allocate €200 million over five years reflects a long-term commitment to fostering innovation. Unlike previous individual investments, this initiative provides a dedicated platform to systematically support multiple startups. For entrepreneurs in the aviation sector, this represents an opportunity to gain industry backing and access to real-world testing environments. The impact of these investments will depend on how well the selected startups integrate their solutions into IAG’s operations and broader industry trends.
