BA to merge with Iberia

09/04/2010

By Nick Jones.

British Airways (BA) has merged with Spanish carrier Iberia in a £5 billion agreement, it has been reported.

According to a BA source, the newly formed International Airline Group could include other big companies in the future, such as American Airlines and Qantas.

The carriers will merge in earnest by the end of 2010, operating 408 aircraft and serving some 58 million passengers per year.

BA chief executive Willie Walsh said: "The merged company will have greater potential for further growth by optimising the dual hubs of London and Madrid, providing continued investment in new products and services."

The International Airline Group will operate at 200 airports, including London Heathrow Airport, and is expected to employ over 60,000 staff members.

BA is currently offering return flights from London to Rome at a price of £98 including tax and surcharges.

The deal applies to passengers travelling in economy class in May, October or November and is based on a seven-day trip.