Major airline merger

Iberia and British Airways airlines signed on April 8 a merger agreement that, if approved by the European Commission, will create the third largest airline group in Europe, called International Airlines Group.

The formal agreement between the Spanish and British airline companies, which should be completed by the end of the year, aims to rescue British Airways from serious financial difficulties.

The two companies are expected to continue operating individually but hope the merger will yield cost savings of 400 million euros per year by the fifth year of the merger, which could mean benefits to shareholders, customers and employees.

As International Airlines Group, the holding company aims to continue employing the 63,000 employees currently working for the two airlines, have 408 aircraft flying to 200 destinations and is expected to carry over 58 million passengers every year.