topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 2119.44 0.28
DAX 6339.94 0.38
IBEX 30 6543 0.13
CAC 40 3047.94 0.32
FTSE 100 5351.53 0.03
AEX 292.76 0.23
DJIA 12454.83 -0.60
Nasdaq 2837.53 -0.07
FTSE MIB 13154.8 0.36
TSX Composite 11576.47 0.09
ASX 4081.2 -0.61
Hang seng 18713.41 0.25
Straits Times 2772.75 -0.24
ISEQ 20 500.94 1.55
You are here: Home News Spanish News Iberia, BA seek merger as crisis invites tie-up

Spanish News

archive
Enlarge font Decrease font Text size


30/07/2008Iberia, BA seek merger as crisis invites tie-up

Spanish carrier Iberia and British airways will be the third-largest airline if talks to merge come through.

30 July 2008

MADRID - British Airways and leading Spanish carrier Iberia said Tuesday they were in talks to merge as they seek to cut costs to meet the challenge of soaring fuel prices and slowing demand.

The two companies are also in talks with US carrier AMR Corp's American Airlines to create what would be a three-party tie-up. BA and Iberia together would be the third-largest airline in the world in terms of revenues, which would amount to a combined EUR 16.5 billion.

Under what would be an all-share merger, BA and Iberia would retain their individual brands and set up a holding company which would trade on the Madrid Stock Exchange. The companies reckon it will take several months to decide the terms of the alliance and an integration and business plan.

After trading in Iberia's shares was briefly halted on Tuesday, its stock closed up 20.73 percent at EUR 1.98. That gave the former Spanish national flag carrier a market capitalisation of EUR 1.88 billion.

The share price of BA, whose market value is more than double Iberia's, closed up 5.97 percent.

In terms of market capitalisation, BA-Iberia would become the fifth-or sixth-largest airline in the world. "The aviation landscape is changing and airline consolidation is long overdue," BA chief executive Willie Walsh said.

[El Pais / Expatica]


0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating



0 reactions to this article

Be the first person to add a comment
Discussion Forums

Technology in Spain

Sat phones/internet links

English in Spain

What is the best travel insurance cover to Spain?

American in Spain

U.S. citizens, plan to vote in 2012? Did you know...

Relocation to Spain

thinking of moving to madrid

Jobs in Spain

Job Agencies or how to find work.

participate in the forums

Inside Expatica
Editor's Guide: Getting Started in Spain

Editor's Guide: Getting Started in Spain

Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.

Groups and Clubs in Madrid

Groups and Clubs in Madrid

Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.

Groups and Clubs around Spain

Groups and Clubs around Spain

A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.

Groups and Clubs in Barcelona

Groups and Clubs in Barcelona

Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.