BA and Iberia in merger talks

British Airways and Iberia, the Spanish flag carrier, have announced that they are in talks over a merger. The boards of both airlines are supporting the negotiations, which come after a failed attempt by a BA-led consortium to buy Iberia last year.

A merger would see the companies form a holding company but it is understood that both the BA and Iberia brands would be retained. The arrangement could be similar to that which saw Air France and KLM merge in 2004.

The combined airline will have a strong presence across both the North and South Atlantic, due to BA’s strength in the US and Iberia’s connections in South America.

British Airways chief executive Willie Walsh says: “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.”

British Airways acquired a 9% shareholding in Iberia in 1999 and has since increased its stake to 13.15%. Iberia has announced today that it has recently acquired a 2.99% direct shareholding in British Airways with an option to buy more.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here