Colpitts

Colpitts Newsletter December

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British Airways and Iberia agree merger proposal

British Airways’ and Iberia’s boards have agreed a binding memorandum of understanding for a proposed merger to create a new, leading European airline group that will bring significant benefits for customers.

The new airline group will have 419 aircraft and fly to 205 destinations. In 2008, British Airways and Iberia carried 62 million passengers and, in their last financial years, their joint revenues are approximately € 15 billion.

The British Airways and Iberia boards believe that the principal benefits of the merger include significant customer benefits:

• Enhanced customer benefits with a larger combined network for passengers and cargo and continued investment in new customer products and services.
• The combined group will offer its customers connections to 205 destinations and strengthen the oneworld alliance. British Airways’ customers will gain access to up to 59 new destinations, of which 13 will be in Latin America, while Iberia’s customers will gain up to 98 new destinations across the British Airways network. They will also be offered better frequencies and connections, more competitive prices, access to more VIP lounges and enhanced frequent flyer benefits.

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