BA-IB merger is near

[whatkindoffreshhell]

http://www.joc.com/node/414617


Carriers holding separate board meetings to finalize details

A merger between British Airways and Iberia moved closer Nov. 12 as the boards of the two carriers held separate board meetings to finalize details of the planned $7 billion deal.

Under the plan being discussed Thursday, BA would control 55 percent of the merged airline while Iberia would own the remainder, according to the Spanish carrier. BA already owns 13.5 percent of Iberia.

BA and Iberia would continue to operate as separate brands under a new operating company, mirroring the merger of Air France and KLM, to protect landing rights which are usually based on a carrier's nationality.




Uncle Bob Crandall should run this juggernaut!

 

[FrugalFlyerv2.0]

BA-IB Agree/Approve Merger

By DANIEL MICHAELS And SANTIAGO PEREZ
British Airways PLC and Iberia Líneas Aéreas de España SA agreed Thursday to create one of the world's largest airlines, culminating more than 15 months of negotiation.

The combination, which still could take another year to close, would create a new European carrier with annual revenue of about €15 billion, or roughly $20 billion.

Together, the airlines carried 62 million passengers on 419 aircraft last year. That would place the combination's traffic No. 7 world-wide, just behind UAL Corp.'s United Airlines, according to industry consultant Ascend. Delta Air Lines Inc. is No. 1 with 121 million passengers.

BA and Iberia will continue to exist as brands and operating companies, maintaining their hubs in London and Madrid, said BA Chief Executive Willie Walsh, who will run the new company. Current Iberia Chairman Antonio Vázquez will be chairman, and BA Chairman Martin Broughton will be deputy chairman.

Current BA shareholders will own 56% of the new company, while Iberia stockholders will own the rest.BA and Iberia each will designate three nonexecutive directors.

 

[FrugalFlyerv2.0]

A merger between British Airways and the Spanish airline Iberia has moved a step closer with the signing of an agreement setting out the terms of their deal.
BBC News