BA And Iberia Announce Merger

British Airways and Iberia have announced that they are to form a merger with both airlines keeping their identities in what will become one huge European airline.

British Airways boss Willie Walsh has refused to rule out the possibility of job losses due to the merger, however the airlines are apparently not to be reduced in size. Together the merger will create and airline that operates to 250 destinations and has close to 450 aircraft. Virgin Atlantic, one of BA's chief rivals has reacted to the news stating that they believe the merger would increase the strong position of the airline and help it retain its dominant position.

Rumour has been rife over the last few weeks regarding the potential merger of the two airlines, with many believing that it was to occur due to high oil prices and the credit crunch biting hard. BA have show an interest in the merger for the last five years however even before the oil crisis began, and was a member of a consortium that had looked at the feasability of purchasing the airline.

Published by: Jon Vickery