UK/SPAIN. British Airways and Iberia have struck a deal to merge the two airlines, and create a new company called International Airlines Group. The BA and Iberia brands will remain in operation.
BA will own a 55% stake in the new group, which will be headquartered in London.
The companies said the move would save €400 million a year in costs and would “benefit shareholders, employees and customers”. The deal, which was initially agreed last November, should be signed off by the end of 2010. The group will operate 408 aircraft and carry more than 58 million passengers a year.
BA Chief Executive Willie Walsh said: “The merged company will provide customers with a larger combined network.”
Iberia Chairman and Chief Executive Antonio Vazquez said the merger was important for the future of the airline industry.
“This is an important step in the process towards creating one of the world’s leading global airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation,” he said.
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