BA to merge with Iberia

Thu Nov 12 2009 20:50:10

British Airways and Iberia have agreed the basis for a proposed merger expected to be completed in late 2010.

The proposed merger will create an airline group with 419 aircraft flying to 205 destinations.

BA chief executive Willie Walsh said: "The merger will create a strong European airline well able to compete in the 21st century.

"Both airlines will retain their brands and heritage while achieving significant synergies as a combined force."

The announcement came after the two companies' boards held separate meetings to discuss a deal which would create the world's third-largest airline by revenue.

It is aimed at helping both airlines cope with the industry's biggest downturn in decades.

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