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International / Airlines
Iberia and BA merger signed
By Doug Newhouse, 30 June 2010
Spanish airline Iberia and British Airways have formally signed a $9.8bn agreement to 'merge' the two airlines in a move that will create the world's third-largest airline, although both parties are still awaiting for the necessary shareholder approval, which is expected this November.
The terms and conditions are as set out in the April announcement by both airlines [click here for details: www.trend-news.com/default.asp?newsid=7918"] where both airlines' managements said that the merger will produce annual savings of around E.400m ($533m) a year. BA is now set to own 55% of the newly-created 'International Airlines Group' which will operate a total of 408 aircraft and carry more than 58m passengers a year.
MORE COMPETITIVE?
The merger, which is expected to be fully completed by the end of this year subject to shareholder approval, should create an alliance which will be more competitive with other major European carriers, such as Lufthansa and Air France-KLM.
Iberia also has a three-month 'walk-away clause' in the contract if it is not satisfied that BA has addressed its pension deficit problems.
BA says it has a programme to fix the £3.7bn ($5.5bn) pension deficit, although it is not clear what this is at present.
By Doug Newhouse, 30 June 2010
Spanish airline Iberia and British Airways have formally signed a $9.8bn agreement to 'merge' the two airlines in a move that will create the world's third-largest airline, although both parties are still awaiting for the necessary shareholder approval, which is expected this November.
The terms and conditions are as set out in the April announcement by both airlines [click here for details: www.trend-news.com/default.asp?newsid=7918"] where both airlines' managements said that the merger will produce annual savings of around E.400m ($533m) a year. BA is now set to own 55% of the newly-created 'International Airlines Group' which will operate a total of 408 aircraft and carry more than 58m passengers a year.
MORE COMPETITIVE?
The merger, which is expected to be fully completed by the end of this year subject to shareholder approval, should create an alliance which will be more competitive with other major European carriers, such as Lufthansa and Air France-KLM.
Iberia also has a three-month 'walk-away clause' in the contract if it is not satisfied that BA has addressed its pension deficit problems.
BA says it has a programme to fix the £3.7bn ($5.5bn) pension deficit, although it is not clear what this is at present.
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• GuestLogix urges 'Thinking beyond the baggage fee' (30 June 2010)
• Bandwidth extended to meet strong demand (29 June 2010)
• ABSOLUT celebrates DFS' 50th birthday (28 June 2010)
• Chivas leads on age matters (28 June 2010)
• iPhone and iPad accessories (28 June 2010)
• Read the June issue of 'The Business' here (28 June 2010)
• BA makes new pay offer to avert strikes (27 June 2010)
• Nuance future fashion vision (27 June 2010)
• Thomsen joins TFWA Board (25 June 2010)
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