BA Merger With Iberia To Go Ahead

British Airways and Iberia moved a step closer to sealing their merger after the Spanish airline backed plans by BA to tackle its pension deficit which was a stumbling block and holding up the deal.

The new company will be called IAG International Airlines Group of which Willie Walsh will be the boss and the Iberia chief Antonio Vazquez the chairman.

BA shareholders will own 56% of the company while Iberia shareholders will retain 44%. The merger will make IAG the second largest airline in the world behind Lufthansa airlines.

BA agreed a deal with the New Airways Pension Scheme to clear the deficit by 2026, BA will contribute £330 million rising with inflation rising at 3% a year.