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British Airways and Iberia this week won the European Union’s regulatory approval to merge and to team up with American Airlines to share more of their lucrative trans-Atlantic routes.

The companies say the two deals will help them cut costs and survive a tough business climate as they struggle with falling passenger numbers and industrial unrest.

British Airways’ merger with Iberia will create Europe’s third-largest airline with a market value of around $7.5 billion. They will keep their existing brand identities and claim the deal will create savings of euro400 million ($530 million) a year by the fifth year.

source: Associated Press

A regulatory hitch saw British Airways and Iberia miss the deadline they had set to sign a definitive merger agreement yesterday on their plan to create Europe’s third-largest airline group.

While the boards of both airlines remain committed to the merger – first announced in November, their plans to list a new holding company in both London and Madrid have run into trouble, according to people with knowledge of the process.

One of the major hurdles to the completion of the deal is BA’s £3.7bn pension scheme deficit.

source: FT.com

British Airways and Iberia could seal their merger agreement as early as next month, according to the Spanish carrier’s biggest shareholder, savings bank Caja Madrid.

The regional bank’s chairman Miguel Blesa gave no hint that strike threats by BA’s cabin crew were having any impact on the planned marriage.

source: dailymail.co.uk

British Airways Plc agreed to a $7 billion merger with Spanish carrier Iberia Lineas Aereas de Espana SA, ending more than a year of talks on a tie-up aimed at fighting a slump in travel and closing the gap with competitors.

Under the all-share deal, British Airways investors will own about 55 per cent of the business, to be led by Willie Walsh, the UK carrier’s chief executive.

British Airways needs a bigger network to compete with larger rivals Air France-KLM Group and Deutsche Lufthansa AG. The combination will meld the UK company’s web of US routes with Iberia’s Latin America services, extending its leading position in the lucrative trans-Atlantic market and consolidating its status as Europe’s third-largest airline.

source: business-standard.com

Unions representing Spanish airline Iberia’s cabin crews have announced a further eight days of strikes unless a pay agreement can be reached. The dates for the proposed strikes are 30 November to 2 December, and 14 December to 18 December.

The airline has already been forced to ground hundreds of flights this week due to strike action.

Most of the affected flights have been short and medium-haul.

source: BBC

Iberia’s plans for a new airline, presented in the midst of merger talks with British Airways, shows the company bracing for a tough future, with or without a partner, analysts said on Friday.

The announcement of the new network airline within its 2012 strategic plan surprised the market, considering its merger plans with BA, which has hinted at a tie-up before the end of the year.

But regardless of a merger, Iberia warned of the need for innovative measures to ensure its viability as the industry weathers the worst crisis in a decade.

source: Reuters

The airlines, along with Iberia, a prospective partner of British Airways, said on Thursday that they planned to apply for antitrust approval from the Transportation Department to form a marketing alliance to link their global flight networks.

American and British Airways tried twice before to bring about such an arrangement, only to face stiff requirements from regulators. But the aviation landscape has changed significantly since they first proposed the deal in 1996. Then, flights between the United States and Heathrow Airport near London were strictly controlled, and deals between big airlines were routinely viewed as anticompetitive.

source: New York Times

The airlines, along with Iberia, a prospective partner of British Airways, said on Thursday that they planned to apply for antitrust approval from the Transportation Department to form a marketing alliance to link their global flight networks.

American and British Airways tried twice before to bring about such an arrangement, only to face stiff requirements from regulators. But the aviation landscape has changed significantly since they first proposed the deal in 1996. Then, flights between the United States and Heathrow Airport near London were strictly controlled, and deals between big airlines were routinely viewed as anticompetitive.

source: New York Times

If the proposed merger between British Airways and Iberia is given the go-ahead, it will create the world’s third largest revenue carrier and give the two carriers a combined 13.5% share of the transatlantic market based on capacity.

The oneworld alliance partners announced on 29 July that they are in talks with a view to carrying out an all-share merger, which would see both airlines retaining their brands as part of a combined group.

source: flightglobal.com

Iberia and Meridiana have signed a code-sharing agreement for flights within Italy, enabling Iberia to offer flights to Cagliari, Catania, Olbia as well as to another eight Italian destinations. Under the new scheme, Iberia passengers can book to Cagliari and Olbia via Roma and to Catania via Bologna.

source: traveldailynews.com