British Airways to merge with Iberia
After 18 months of discussions British Airways (BA) is to merge with Spanish airliner, Iberia, creating the 3rd largest airliner in the world through a £4.2bn deal.
BA will have a 55% stake of the new company with Willie Walsh taking the role of Chief Executive for the BA-Iberia brand, while Iberia’s chief executive will be appointed chairman. The deal should be finalised before 2011.
The BBC reports, “It would create an airline with 419 aircraft flying to 205 separate destinations, and would save the two partners 400m euros ($594m; £358m) in costs a year where there current relations are few and far between, Iberia will benefit from the African market where BA’s presence is well documented.”
Willie Walsh says about the deal, “The merger will create a strong European airline well able to compete in the 21st Century and both airlines will retain their brands and heritage while achieving significant synergies as a combined force.”
Once the merger is complete the airline will be worth £4.5billion, the second most valuable airliner behind Lufthansa, currently worth £4.6billion.