British Airways and Iberia sign merger agreement

British Airways and Iberia sign merger agreement

British Airways and Spanish airline Iberia have signed a merger agreement that will create one of the biggest airline groups. The merger was initially agreed in November last year and is expected to be completed by the end of the year. The individual BA and Iberia brands will continue to operate as normal, while the new company will be called International Airlines Group. Its headquarters will be based in London. In a joint statement, the two companies said the group would operate 408 aircraft carrying more than 58 million passengers. “The merged company will have greater potential for further growth by optimising the dual hubs of London and Madrid providing continued investment in new products and services,” said BA Chief Executive Willie Walsh. Rival airlines have expressed opposition to the agreement, with low-fare carrier Ryanair recently likening the merger to “two drunks trying to prop each other up”. A Virgin Atlantic spokesman said: “The deal will increase BA’s dominance at Heathrow Airport.” The merger is expected to be completed in late 2010 and is expected to generate annual synergies of around

Gary Marshall
Written by:
Gary Marshall
Posted On:
Posted In: