BA confirms Iberia merger

13/11/2009

By Nick Jones.

British Airways (BA) has confirmed that it will be involved in a £4.4 billion merger with Spanish airline Iberia.

The deal, expected to create the third largest airline in Europe, must be approved by the European Commission and will be completed in late-2010.

BA is to form 55 per cent of the consolidated carrier, which will boast 419 aircraft operating on 205 routes.

Willie Walsh, chief executive of the airline, said: "The merger will create a strong European airline well able to compete in the 21st century.

"Both airlines will retain their brands and heritage while achieving significant synergies as a combined force."

Some 13.5 per cent of Iberia is already owned by BA and the two companies have a code-sharing agreement under the oneworld group banner.

It is thought the merger could save the partners €400 million (£358 million) in costs per year.

BA currently offers services from over 20 UK airports, including London Gatwick, Newcastle, Aberdeen, Inverness and Manchester.