British Airways & Iberia merger gets green light17 July 2010
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