News BA and Iberia merger edges closer

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BA and Iberia merger edges closer

The proposed merger between British Airways (BA) and Iberia, Spain's flag carrier, would be welcome news for customers

The proposed merger between British Airways (BA) and Iberia, Spain’s flag carrier, would be welcome news for customers.

This is according to ABTA – The Travel Association’s Frances Tuke, who said that the synergy of having the two airlines together can only be a "good thing" for passengers.

"The whole point of the merger is to develop a more successful airline company, so with that in mind they will have to be competitive in order to do that," she explained.

The merger, which has yet to receive approval from the European Commission, would see BA become the dominant holder with a 55 percent stake in the company.

Iberia would hold the remaining 45 percent, which would make the airline the world’s third largest international carrier.

A previous stumbling block in discussions, namely the £2.6 billion pensions benefit thought to be owed to trustees by BA, has since been resolved.

The merger is expected to receive regulatory backing and be concluded by the end of next year.

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