Iberia and BA to link up from November
16 September 2004, MADRID - The alliance between Spain's Iberia Airlines and British Airways will go into effect in November, it was announced Thursday.
16 September 2004
MADRID - The alliance between Spain's Iberia Airlines and British Airways will go into effect in November, it was announced Thursday.
Iberia Managing Director Angel Mullor said that the alliance entailed a process of integration of the airlines' sales networks in Europe and Latin America.
Mullor added the move also includes merging the workforce and market distribution, and establishing joint accounts, "steps which are part of the initial agreement and for which we have requested authorization from Brussels."
"It's a gradual process of integration," Mullor told reporters during the unveiling of Iberia's new flights to Central America.
"After that, it's possible that a percentage of shares change hands," but not "immediately".
"The least important issue for us is whether the percentage of shares owned by either company is higher or lower," Mullor said, adding that "we're not going to start building the house from the roof down."
According to Mullor, Iberia does not need to shed assets, since its accounts "are completely in shape ... and we're no longer in the same situation as British ... but we'll have to continue implementing cost-cutting measures" as a result of "competition from low-cost airlines".
The alliance was approved at the end of last year by the European Commission.
[Copyright EFE with Expatica]
Subject: Spanish news