BA and Iberia announce Merger
BA and Iberia announce merger
Friday, 13 November 2009 09:28
British Airways and Spanish airline Iberia have approved proposals for a merger which would create a European aviation giant.
A joint statement from BA and Iberia said the new airline would have 419 aircraft and fly to 205 destinations. The merger is expected to be completed in late 2010.
BA will hold 55% of the new company, while Iberia will hold 45%. BA Chief Executive Willie Walsh will be chief executive of the new company.
The announcement comes after the two airlines held board meeting talks on a merger that would create a European aviation giant to rival Air France-KLM and Lufthansa.
Both airlines have suffered heavy losses because of plunging demand for air travel in the fierce global economic downturn.
Iberia announced third quarter losses today of €16.4m.
The pair announced in July 2008 that they were in talks about a deal, but discussions were bogged down in differences over the balance of control and the size of BA's pension-fund deficit.