Edmund Shing explains why falling oil prices mean now is the perfect time to invest in IAG (International Consolidated Airlines Group), the parent company of British Airways, Iberia and Aer Lingus.

1) Member of FSTE 100
IAG is a member of the FTSE 100 index (LON:IAG), meaning it forms part of the prosperity gauge for UK market health.

2) Owns three big airlines
IAG is the parent company for three airlines: British Airways in the UK, Iberia in Spain, and Aer Lingus in Ireland.

3) Lower fuel costs
IAG is profiting from lower fuel costs from falling oil prices and their business class transatlantic travel, most typically between London and New York.

4) Cost-cutting measures
They are also making money from cost-cutting measures. Putting these three airlines together allows the company to consolidate and strip out costs.

5) It's cheap
IAG is a cheap company with a P/E Ratio (TTM) of 8.65 and a dividend yield of 2.73% (as of 8 December 2015).

Edmund Shing is Global Head of Equity Derivative Strategy at BNP Paribas in London. He holds a PhD in Artificial Intelligence.