BA, Iberia Shareholders Vote in Favor of Merger

BA, Iberia Shareholders Vote in Favor of Merger

Shareholders of British Airways (BA) and Iberia have voted in favor of a merger between the two airlines. “We’ve had a strong relationship with Iberia for more than a decade and this merger will enhance both airlines’ strategic and financial positions, creating benefits for our customers, shareholders and staff,” said Willie Walsh, BA’s chief executive.

The merger will create a new holding company, International Airlines Group, which is expected to have annual synergies of €400 million after the fifth year. BA and Iberia will retain their individual brands and airline operations.

Walsh said the merged company will benefit from the two airlines’ complementary networks with BA’s strong presence in North America, Asia and Africa, and Iberia’s strong presence in Latin America and our combined presence in Europe. The new company officially will begin operations on Jan. 21, 2011.