MADRID (Reuters), – Chief executive of British Airways parent IAG (LON) Luis Gallego said Wednesday that a deal regarding the delayed acquisition of Spanish low-cost airline Air Europa might take 18 months.

Gallego stated that “we have to choose a date to take 100%”, but it could take at least 18 months.” Gallego spoke during an event called “Wake Up Spain” held in Madrid. However, he didn’t specify how much IAG would ultimately pay for Air Europa.

Gallego stated that the company would also need to obtain antitrust approvals from several countries.

IAG had announced that it would buy its small rival in the late 2019. It did so with the intention of creating a large hub in Madrid. However, the COVID pandemic as well as antitrust concerns halted the deal.

The pandemic plunged the airlines industry into financial crisis and hit Air Europa especially hard. Shareholders in the companies decided to reduce the price of the agreement to 500 million Euros.

Spain approved an emergency package of 475 millions euros for Air Europa. Part of this could be turned into equity. The Spanish government was also involved in these talks.

All negotiations were at an end, but they came to a halt last month when IAG approved a loan of 100 million euros to Air Europa that can be converted to a 20% interest.

Gallego also stated that Gallego expected the company to continue operating at 90-95% of pre-pandemic levels in this summer.

($1 = 0.9159 euros)