International Airlines Group (IAG) starts trading

International Airlines Group (IAG) starts trading

The merger of British Airways and Iberia became a reality yesterday, as shares in the new International Airlines Group (IAG) were listed for trading. The new airline group is Europe’s third-largest and the sixth-largest in the world by revenues (more than EUR14,000 million), with a fleet of 406 aircraft and 55 million passengers in 2010. “IAG has a great future ahead of it,” said IAG and BA’s chief executive Willie Walsh. “The first two airlines in the group, British Airways and Iberia, will retain their strong brands and have complementary networks that operate from two of the biggest hubs in Europe.” The airlines expect annual synergies worth some EUR400 million starting the fifth year following the merger. Some 60 percent of these synergies will arise from cost savings, and 40 percent from larger revenues. “British Airways and Iberia are the first two airlines in IAG but they won’t be the last,” continued Walsh. “Our goal is for more airlines - but, importantly, the right airlines - to join the group. Today is the first step towards creating a multinational multi-brand airline group.” The merger will facilitate access for customers of both airlines to a network of 204 destinations around the world. Antonio V

Gary Marshall
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Gary Marshall
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