British Airways – Iberia merger goes ahead

     British Airways has reached the final stages of its merger with Iberia, and is now expected to complete the deal in November.
     International Airlines Group will be the name of the merged group – although BA and Iberia will retain separate identities as far as passengers are concerned.
     Announcing the completion of arrangements, BA confirmed that Willie Walsh will be chief executive and Iberia’s Antonio Vazquez will be chairman. The operational base will be at Heathrow.
     The deal recreates the two loss making companies as the second biggest airline in Europe in terms of passenger numbers.
    The final completion of the merger is still subject to regulatory approval from the relevant competition authorities including the European Commission and to approval by both British Airways and Iberia shareholders, with BA’s pension arrangements a significant element.
    The merged group will have revenues of around £12 billion, have 408 aircraft and carry around 58 million passengers if present levels are reflected.
    Antonio Vazquez, Iberia’s chairman and chief executive, said: “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. We look forward to concluding the deal before the year end.”
   Willie Walsh, British Airways chief executive, said: “The merged company will provide customers with a larger combined network. It will also have greater potential for further growth by optimising the dual hubs of London and Madrid and providing continued investment in new products and services.”