British Airways has finally merged with Iberia to form the International Airlines Group (IAG), with Willie Walsh officially taking his place as the chief executive officer of the new organisation.
Walsh, in a press release, said, “IAG has a great future ahead of it. The first two airlines in the group, British Airways and Iberia, will retain their strong brands and have complementary networks that operate from two of the biggest hubs in Europe. The merger will lead to annual synergies of €400 million from year five and benefit IAG shareholders and British Airways’ and Iberia’s customers and staff.”
He also added that “British Airways and Iberia are the first two airlines in IAG but they won’t be the last. Our goal is for more airlines – but, importantly, the right airlines – to join the group. Today is the first step towards creating a multinational multi-brand airline group.”
According to him, this marks the end of a remarkable 12 months for British Airways, with some unprecedented developments, putting British Airways yet again at the forefront of the aviation industry.
Both airlines will continue to operate under their existing brand names and the new company will carry over 62 million passengers a year to over 250 destinations.
By combining British Airways’ extensive network to North America and Asia with Iberia’s to Latin America, customers will have considerably more choice of destinations and frequencies.
The new company’s headquarters will be in London, with board meetings taking place in Madrid.
In addition to the merger, last year British Airways and Iberia received approval from the European Union and the US Department of Transportation to form a transatlantic joint business agreement with American Airlines, providing customers with greater access to a global network of more than 500 destinations, discounted fares and more convenient connections.
The joint business also gives greater rewards to frequent flyers who will be able to ‘earn and burn’ miles on both BA, Iberia and American flights across the Atlantic.
It would enable the airlines to launch new routes that would not have been economically viable for a single airline and a new route from Heathrow to San Diego, slated for launching on June 1, this year.
Walsh, in a press release, said, “IAG has a great future ahead of it. The first two airlines in the group, British Airways and Iberia, will retain their strong brands and have complementary networks that operate from two of the biggest hubs in Europe. The merger will lead to annual synergies of €400 million from year five and benefit IAG shareholders and British Airways’ and Iberia’s customers and staff.”
He also added that “British Airways and Iberia are the first two airlines in IAG but they won’t be the last. Our goal is for more airlines – but, importantly, the right airlines – to join the group. Today is the first step towards creating a multinational multi-brand airline group.”
According to him, this marks the end of a remarkable 12 months for British Airways, with some unprecedented developments, putting British Airways yet again at the forefront of the aviation industry.
Both airlines will continue to operate under their existing brand names and the new company will carry over 62 million passengers a year to over 250 destinations.
By combining British Airways’ extensive network to North America and Asia with Iberia’s to Latin America, customers will have considerably more choice of destinations and frequencies.
The new company’s headquarters will be in London, with board meetings taking place in Madrid.
In addition to the merger, last year British Airways and Iberia received approval from the European Union and the US Department of Transportation to form a transatlantic joint business agreement with American Airlines, providing customers with greater access to a global network of more than 500 destinations, discounted fares and more convenient connections.
The joint business also gives greater rewards to frequent flyers who will be able to ‘earn and burn’ miles on both BA, Iberia and American flights across the Atlantic.
It would enable the airlines to launch new routes that would not have been economically viable for a single airline and a new route from Heathrow to San Diego, slated for launching on June 1, this year.
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