British Airways (BA) and Iberia have signed a deal to merge and create one of the world’s biggest airlines.
The new company will be called International Airlines Group but the BA and Iberia brands will continue to operate as normal. The merger is expected to achieve savings of £350m a year.
BA and Iberia are considered a natural fit because they have few over-lapping routes. They will also be able to compete more effectively against European competitors Lufthansa and Air France-KLM.
According to BA, the new group will operate 419 aircraft, flying to more than 200 destinations, and carry a total of 62 million passengers a year.
The merger is expected to be completed by December, subject to approval from shareholders and regulators.
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