BA has confirmed that it will be mergingwith Spanish airline Iberia, with the process expected to take until the end of 2010. The merger will result in the creation of one of the world's largest airline groups, with 408 aircraft flying to over 200 destinations.

The announcement cameon the same day as speculation emerged that United Airlines was in merger talks with US Airways, which would reult in the second largest US carrier.

The BA-Iberia merger would result in cost savings of approximatley €400 million by the fifth year of the merger.

The new holding company called International Consolidated Airlines Group SA will be known as as International Airlines Group.

Importantly for the consumer, both airlines will retain their current operations and operate under their individual brands, so expect to see no changes from a booking and communications perspective.

Notably, the two carriers require regulatory approval from competition authorities and will present to the relevant organisations in November 2010

BA said it had see a "modest" underlying year on year improvement in premium traffic last month with economy traffic "stable," excluding the impact of the two strike by Unite cabin crew members

Airline Booking and Information

Latest Related News