Airline group IAG buys stakes in tech start-ups

International Airlines Group, the owner of carriers British Airways and Iberia, is stepping up its digital investment by taking stakes in two technology start-ups following its first accelerator programme. The company has set up a multimillion-pound corporate venture fund with the aim of identifying digital start-ups that could help improve the efficiency of its business as well as improve the customer experience. Its first investments are in Esplorio, an automated travel journal app that builds a memory of a trip based on travellers’ social media updates, and VChain, a company that authenticates customer data using blockchain technology. Stephen Scott, head of global innovation of IAG, said the group planned to make further investments. “Where we see strategic alignment we want to invest in new technologies that will help our business move forward.” The group would not disclose how much it had invested in the two start-ups but said neither were majority shareholdings. The investments come as airlines are increasingly focused on digital innovation after being slow compared with other industries to realise the potential of the market.<br/>