Menu
29/07/2008
BA And Iberia In Merger Talks
The UK's 'flag-carrier' British Airways and Spanish airline, Iberia are holding talks with a view to an "all-share" merger.
The deal would allow the companies to combine nearly all aspects of their operations including sales, purchases and marketing.
The firms say that the British Airways and Iberia brands would be retained as part of any new, combined group.
Earlier this year, BA was in talks with US-based AA and Continental, about creating an alliance but Continental backed out.
BA and AA are now continuing their discussions and have invited Iberia to be the third member.
It is understood that if BA and AA seek regulatory approval to merge their operations, it will be their third attempt having been blocked in 1998 and 2001.
However, the European Union has already granted BA and Iberia approval to co-operate widely.
British Airway's Chief Executive, Willie Walsh said: "The aviation landscape is changing and airline consolidation is long overdue.
"The combined balance sheet, anticipated synergies and network fit between the airlines make a merger an attractive proposition, particularly in the current economic environment.
"We've had a successful relationship with Iberia for a decade and are confident that both companies' shareholders would benefit from the proposed tie-up," he said.
Iberia's Chairman and Chief Executive, Fernando Conte, said: "A merger would be good news for our customers and enhance our existing relationship.
"We've worked together for nearly 10 years and a tie-up would build on that success. It would also strengthen the one-world alliance and further develop Madrid's position as the European gateway to Latin America."
The news of a potential merger with Iberia has boosted BA's share price by 8%.
However, BA has separately warned that it may struggle to stay profitable this year - in common with many other airlines - being hit by rising fuel costs and the global credit crunch.
AA lost $328 million (£164.7 million) and Iberia $28.3 million (£22.5 million) in the first quarter of this year.
Meanwhile, BA has just announced that it has bought L'Avion, a French business class-only airline for £54 million.
(DS)
The deal would allow the companies to combine nearly all aspects of their operations including sales, purchases and marketing.
The firms say that the British Airways and Iberia brands would be retained as part of any new, combined group.
Earlier this year, BA was in talks with US-based AA and Continental, about creating an alliance but Continental backed out.
BA and AA are now continuing their discussions and have invited Iberia to be the third member.
It is understood that if BA and AA seek regulatory approval to merge their operations, it will be their third attempt having been blocked in 1998 and 2001.
However, the European Union has already granted BA and Iberia approval to co-operate widely.
British Airway's Chief Executive, Willie Walsh said: "The aviation landscape is changing and airline consolidation is long overdue.
"The combined balance sheet, anticipated synergies and network fit between the airlines make a merger an attractive proposition, particularly in the current economic environment.
"We've had a successful relationship with Iberia for a decade and are confident that both companies' shareholders would benefit from the proposed tie-up," he said.
Iberia's Chairman and Chief Executive, Fernando Conte, said: "A merger would be good news for our customers and enhance our existing relationship.
"We've worked together for nearly 10 years and a tie-up would build on that success. It would also strengthen the one-world alliance and further develop Madrid's position as the European gateway to Latin America."
The news of a potential merger with Iberia has boosted BA's share price by 8%.
However, BA has separately warned that it may struggle to stay profitable this year - in common with many other airlines - being hit by rising fuel costs and the global credit crunch.
AA lost $328 million (£164.7 million) and Iberia $28.3 million (£22.5 million) in the first quarter of this year.
Meanwhile, BA has just announced that it has bought L'Avion, a French business class-only airline for £54 million.
(DS)
Related UK National News Stories
Click here for the latest headlines.
12 November 2009
Iberia 'Da La Bienvenida A' BA
Spanish airline Iberia may soon be welcoming a new partner. The UK carrier, British Airways, has confirmed it is considering a merger deal with Iberia with a view to operating from a Madrid HQ.
Iberia 'Da La Bienvenida A' BA
Spanish airline Iberia may soon be welcoming a new partner. The UK carrier, British Airways, has confirmed it is considering a merger deal with Iberia with a view to operating from a Madrid HQ.
14 August 2008
BA, American Airlines And Iberia Deal Close
British Airways says it has sealed a deal with American Airlines and Spain's Iberia in a controversial merger. The alliance will allow the carriers to fix fares, routes and schedules together. It is understood the deal will help the carriers cut costs in the face of rising aviation fuel prices.
BA, American Airlines And Iberia Deal Close
British Airways says it has sealed a deal with American Airlines and Spain's Iberia in a controversial merger. The alliance will allow the carriers to fix fares, routes and schedules together. It is understood the deal will help the carriers cut costs in the face of rising aviation fuel prices.
01 August 2008
BA Announce Profit Plummet
British Airways has announced a sharp decrease in first-quarter profits blaming the "worst trading environment" the industry has ever faced. The pre-tax profit for the carrier was £37m for the quarter ending June 30, compared with £298m in 2007 - an 88% drop, partly because fuel costs soared by almost 49%.
BA Announce Profit Plummet
British Airways has announced a sharp decrease in first-quarter profits blaming the "worst trading environment" the industry has ever faced. The pre-tax profit for the carrier was £37m for the quarter ending June 30, compared with £298m in 2007 - an 88% drop, partly because fuel costs soared by almost 49%.
01 April 2008
Baggage Blues For BA Passengers
The beleaguered airline, BA has issued a fresh apology to thousands of travellers who are without their luggage. Chaos ensued after the opening of Terminal 5, with problems ranging from staff parking to computer hitches.
Baggage Blues For BA Passengers
The beleaguered airline, BA has issued a fresh apology to thousands of travellers who are without their luggage. Chaos ensued after the opening of Terminal 5, with problems ranging from staff parking to computer hitches.
01 November 2010
Jet Threat Security Warning Issued
Security experts have said that a hasty 'knee-jerk reaction' would not prevent future attacks on planes. The statement comes after a parcel bomb was allowed onto a freight plane at the UK's East Midlands Airport.
Jet Threat Security Warning Issued
Security experts have said that a hasty 'knee-jerk reaction' would not prevent future attacks on planes. The statement comes after a parcel bomb was allowed onto a freight plane at the UK's East Midlands Airport.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
