13/11/09 British Airways and Iberia Airways Merger Agred
It has been announced that agreement has been reached for a merger between British Airways and Iberia Airways, to be completed by the end of 2010.
Stop-start discussions have been continuing between the two airlines for over a year with apparent stumbling blocks being the valuations of the two airlines and the British Airways pension fund deficit which has been reported to be around 3 billion pounds.
It is understood that both airlines will retain their current branding in much the same as Air France and KLM did after their merger in 2004.
Both airlines have been struggling with the present economic climate, resulting in large losses. The merger is expected to result in cost savings and make more flights and facilities available to th customers of the individual airlines.