International Airlines Group (IAG), the parent company of British Airways, Iberia and Aer Lingus, has launched IAGi Ventures, a corporate venture arm, and renamed external innovation brand Hangar 51 as IAGi.
IAGi Ventures will invest up to €200 million over the next five years, with a focus on early-stage opportunities.
“We want to be at the forefront of innovation in the aviation industry, leveraging cutting-edge technology and new strategies to enhance our operations and customer experience,” said Jorge Saco, chief information, procurement, services and innovation officer of IAG.
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Saco said the group is looking to work with and learn from "top innovators" to improve its business and generate more value.
“By launching venturing, alongside our accelerator program, we plan to work with the best start-ups and scale-ups tackling today’s challenges,” Saco said.
In November, IAG hosted its eighth accelerator program with startups focused on sustainability, customer experience, operational efficiency and airports through Hangar 51. Hangar 51, which launched in 2016, had partnered with more than 100 startups as of March.
“The transition from Hangar 51 to IAGi is more than just a name change – we are more committed than ever to fostering meaningful collaborations that drive innovation,” IAGi said in a release.
While fewer than 10% of airlines have invested in startups, IAG isn’t alone in efforts to support innovation. JetBlue has its JetBlue Ventures and United Airlines started a fund with other companies to focus on sustainability, to name a couple.