British Airways and Iberia Finally Seal Their Merger

After many months of going back and forth, it appears that British Airways and Iberia have finally sealed their long awaited merger. This merger will see the two carriers integrate operations by the end of this current year. They are expected to save up to £350 million every year from the £5 billion deal. The company will now trade as a holding company called International Airlines Group.

The new company will be called International Airlines Group, but the two airlines will continue to operate under their current names. The two airlines will also go on to carry out their work as normal. Overall, most customers will not even notice that these two airlines have merged together.

British Airways chief executive, Willie Walsh, will be the chief executive of the new airline. He did note that this merger will be good for customers. Willie Walsh said that the merged company will provide customers with a larger combined network. It will also have greater potential for further growth by optimizing the dual hubs of London and Madrid and providing continued investment in new products and services.

Both of these airline are expected to report some very heavy losses for this year. British Airways is predicted to announce its heaviest annual loss since privatization in 1987. This merger will also allow the companies to compete more effectively with other European giants like Air France and Lufthansa.

The Iberia chairman and chief executive, Antonio Vazquez, said that the merger was important for the future of the airline industry. This is an important step in the process towards creating one of the world’s leading airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation.